Question
In 2023, the Berryhill Company discovers a self-correcting error made in 2021, affecting 2021 and 2022 Net Incomes. The 2022 books are closed. Accounting for
In 2023, the Berryhill Company discovers a self-correcting error made in 2021, affecting 2021 and 2022 Net Incomes. The 2022 books are closed. Accounting for the error correction will include:
Select one:
a. An adjustment to Retained Earnings, but not a Restatement of prior-year presented financial statements
b. A Restatement of prior-year presented financial statements, but not an adjustment to Retained Earnings
c. Both an adjustment to Retained Earnings and a Restatement of prior-year presented financial statements
d. Neither an adjustment to Retained Earnings nor a Restatement of prior-year presented financial statements
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