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The Correction of a Material Error That Occurred in a Previous

Question 3

Multiple Choice

The correction of a material error that occurred in a previous period must be accounted for by:


A) ignoring it; errors made in prior periods can't be corrected.
B) an adjustment in future accounting periods.
C) a prospective adjustment to the financial statements.
D) a retrospective restatement in the first financial statements issued after the discovery of the error.

Correct Answer:

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