When an error is discovered, it should be corrected as of the end of the year in which the error was made.

Name: When an error is discovered, it should be corrected as of the end of the year in which the error was made.
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Question

Quizplus · Accepted Answer

Errors should be corrected in the period in which they are discovered, with an adjustment to the beginning balance of retained earnings for the earliest period presented, rather than correcting the financial statements of the year in which the error was made.

When an Error Is Discovered, It Should Be Corrected as of the End