In 2019, ABC Corp. discovered that there was an error made in 2018. The error did not affect net income. When correcting the error, ABC must do which of the following? O A File amended returns with the SEC O B Prepare a prior period adjusting entry O C Include a footnote stating the effect of the error Do all of A,B, and C o E Do nothing since the error did not affect net income AAM Cartage bought a new delivery truck in January of 2016. The cost was $ 80,000, the estimated useful life 10 years, and $ 0 residual value. At the beginning of 2018, AAM realized the truck was originally recorded as a Delivery expense rather than a depreciating asset. As part of the error correction, AAM has to make a prior period adjusting entry to retained earnings. What should that part of the entry be? O A Debit Retained Earnings $80,000 1 o B Credit Retained Earnings $80,000 1o C Debit Retained Earnings $ 56,000 o D Credit Retained Earnings $ 56,000 o E Credit Retained Earnings $ 48,000 In January of 2017, Med Corp purchased a 5-year insurance policy and paid cash for the entire premium. In March of that year, it was discovered that the entire $35,000 premium was recorded as insurance expense. In March, when the error was discovered, which of the following would be part of the error correction, if needed? o A Credit Insurance payable Debit Insurance expense 0 C Debit Prepaid Insurance o D Debit Cash O E There is no correction needed, the original entry is correct ABC Corp has issued $1,000,000 of zero-coupon bonds. When the bonds are issued, what is the effect on cash flow? O A Investing cash outflow 0 B Financing cash outflow o c Investing Cash inflow 1o D Investing cash inflow o E Cash from operations inflow XYZ Corp. is upgrading its manufacturing equipment. The new equipment was purchased for $450,000. XYZ made a 30% down payment and signed a note with the equipment supplier for the balance. What is the cash flow effect of this transaction? O A Financing Inflow of $450,000 o B Investing Outflow of $450,000 O C Financing outflow of $315,000 o D Investing Inflow of $135,000 O E Investing outflow of $135,000