After preparing the financial statements for 2009, the accountant for the Dawson Corporation discovered that a retrospective restatement had been omitted from the 2007 financial statements. Which of the following is most likely to require correction as a result of this oversight?

Question

Quizplus · Accepted Answer

The retrospective restatement for 2007 would affect the beginning balance of retained earnings for 2008, which in turn would impact the ending balance of retained earnings for 2009. Therefore, C is the best choice as the correction required would be to adjust the ending retained earnings at December 31, 2009, to reflect the retrospective restatement. A, B, and D would not be affected by the retrospective restatement in 2007.

After Preparing the Financial Statements for 2009, the Accountant for the Dawson