Indicate the proper accounting treatment for a correction of an error: Select one: a. Accounted for...

Indicate the proper accounting treatment for a correction of an error:

Select one:

a. Accounted for prospectively

b. Accounted for retrospectively

Solutions

Expert Solution

Option (b) is correct

Errors are corrected retrospectively. It means that prior period financial statements, in which the error occurred, are restated.

ekkarill92 answered 2 years ago

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