Which of the following is not reported as an accounting error (prior period adjustment)?
A) Change in the method of inventory pricing form FIFO to average-cost.
B) Mathematical mistakes.
C) Mistakes in the application of accounting principles.
D) Oversight or misuse of facts that existed at the time financial statements were prepared.

Question

Quizplus · Accepted Answer

A change in the method of inventory pricing is not considered an accounting error (prior period adjustment), but rather a change in accounting estimate. The other options listed (mathematical mistakes, mistakes in the application of accounting principles, and oversight or misuse of facts) are all examples of accounting errors that may require prior period adjustments.

Which of the Following Is Not Reported as an Accounting