Recording of next year's purchases as purchases of the current year will O understate net income of next year O overstate net income of the current year overstate retained earnings at the end of the current year O not affect retained earnings at the end of next year
Recording of next year's purchases as purchases of the current year will O understate net income of next year O overstate net income of the current year overstate retained earnings at the end of the current year O not affect retained earnings at the end of next year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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disregard the answers, i am not sure with that. thank you!
![Recording of next year's purchases as purchases of the current year will
O understate net income of next year
overstate net income of the current year
overstate retained earnings at the end of the current year
O not affect retained earnings at the end of next year](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F448b8722-e769-4616-9917-2212397b0d7a%2F1be32ad3-6085-4685-aefd-19fa4879a96b%2Fbtywet_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Recording of next year's purchases as purchases of the current year will
O understate net income of next year
overstate net income of the current year
overstate retained earnings at the end of the current year
O not affect retained earnings at the end of next year
![If the statement of financial position error is discovered in a subsequent accounting
period, what action is to be done by the entity?
O Reclassify the item to its proper real account and restate the statement of financial position
of the prior year affected by the error.
O Reclassify the item to its proper real account but do not restate the statement of financial
position of the prior year affected by the error.
Reclassify the item to its proper real account.
Restate the statement of financial position of the prior year affected by the error.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F448b8722-e769-4616-9917-2212397b0d7a%2F1be32ad3-6085-4685-aefd-19fa4879a96b%2Fnzii896_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If the statement of financial position error is discovered in a subsequent accounting
period, what action is to be done by the entity?
O Reclassify the item to its proper real account and restate the statement of financial position
of the prior year affected by the error.
O Reclassify the item to its proper real account but do not restate the statement of financial
position of the prior year affected by the error.
Reclassify the item to its proper real account.
Restate the statement of financial position of the prior year affected by the error.
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