Accounting errors include changes in estimates that occur because a company acquires more experience, or as it obtains additional information.

Question

Quizplus · Accepted Answer

Accounting errors are unintentional mistakes in financial statements, such as mathematical miscalculations, incorrect reporting, or omissions. Changes in estimates, however, are not considered errors but rather adjustments made as new information becomes available or as the company gains more experience.

Accounting Errors Include Changes in Estimates That Occur Because a Company