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If a Material Accounting Error Was Made in a Prior

Question 97

Multiple Choice

If a material accounting error was made in a prior year,that error:


A) Should be reflected on the current year's income statement.
B) Should be reflected,net of taxes,on the retained earnings statement.
C) Should be reflected as a change in accounting principle.
D) Should be considered as an extraordinary item,and shown,net of taxes,on the income statement.

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