An error on the 2012 income statement is discovered in 2014.The adjustment to correct the error will appear on the:

Question

Quizplus · Accepted Answer

Errors discovered in financial statements of prior periods are corrected by adjusting the opening balance of retained earnings in the year the error is discovered. Therefore, the adjustment for an error found in 2014 that relates to the 2012 financial statements would appear in the 2014 statement of retained earnings.

An Error on the 2012 Income Statement Is Discovered in 2014.The