If a firm discovers a self-correcting error in the second year, and the books are still open, it ________
A) need not correct the error because it will reverse itself at the end of the year
B) should correct beginning retained earnings and any remaining accounts needed to correct the error for both years
C) must recall the previous year's financial statements, correct them, and reissue the financials
D) should only correct the second year's error and leave beginning retained earnings unadjusted
Answer: B
Business
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Residual value is also known as depreciable cost
Indicate whether the statement is true or false
Business
ABC Co. has an average inventory of 750. The carrying cost per item is 1.25, the ordering cost is $18 per order, and they make 28 orders per year. What is the total carrying cost for ABC Co?
A) $504 B) $937.50 C) $1,166.67 D) $844.50 E) $492.65
Business