Question 43

When preparing 20X2 financial statements, you discover that deprecia- tion expense was not recorded in 20X1. Which of the following statements about correction of the error in 20X2 is not 43. true? a. The correction requires a prior period adjustment. b. The correcting entry will be different than if the error had been corrected the previous year when it occurred. c. The 20X1 Depreciation Expense account will be involved in the correcting entry d. All above statements are true. Which of the following is an accurate description of how failure to record an accrual is likely to be found? 44 a. An expense that was not accrued is paid, but there is no payable on the books as there should be able on the books as there should be. account that is normally present after accruals are recorded is b. A revenue that was not accrued is received, but there is no receiv- (c.)A review of the trial balance reveals that an asset or liability not present. d. All above statements are accurate descriptions of how failure to record an accrual is likely to be found. A comparison of this year's trial balance with last year's may be a good way to discover