Which of the following is a noncounterbalancing error?
A) accrued expenses not recognized at year-end
B) accrued revenues that have not been collected or recognized at year-end
C) depreciation expense overstated for the year
D) prepaid expenses not recognized at year-end

Question

Quizplus · Accepted Answer

A noncounterbalancing error is one that does not automatically correct itself in the next accounting period. Overstating depreciation expense affects multiple periods and does not self-correct in the next period, making it a noncounterbalancing error.

Which of the Following Is a Noncounterbalancing Error