Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 4 - Income Statement and Related Information - Review and Practice - Questions - Page 179: 12

Answer

Elements considered as corrections of errors should be credited or charged to the operating balance of retained earnings.

Work Step by Step

Errors in financial statements reduce the quality and usability of the information and should be effectively adjusted and restated.
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