A company made an error in calculating and reporting amortization expense in Year 1. The error was discovered in Year 2. The item should be reported as a prior period adjustment:
A. on the Year 1 income statement.
B. on the Year 1 statement of retained earnings.
C. on the Year 2 income statement.
D. accounted for with a cumulative "catch-up" adjustment in Year 2.
E. on the Year 2 statement of retained earnings.
Answer: E
You might also like to view...
In MUS sampling basic precision is the upper misstatement limit when no misstatements are detected in a MUS sample. It is computed by multiplying the sampling interval by the error expansion factor
a. True b. False Indicate whether the statement is true or false
Attracting a new customer is five times as costly as retaining an existing one.
Answer the following statement true (T) or false (F)
The federal legislation enacted in 1937 during the Great Depression to provide retirement funds and hospital insurance for retired and disabled workers. Today, it is divided into two categories, social security and Medicare. ? The above legislation is called the Federal Insurance Contribution Act (FICA).?
Indicate whether the statement is true or false
Which of the following questions would be answered in the feasibility section of a proposal for a class research project?
A. What organizational problem exists? B. Who in the organization would have the power to implement your recommendation? C. How much will you charge? D. Are you sure that a solution can be found in the time available? E. What published sources will you use?