Saved Which of the following statements is true regarding the correction of an error? Help Save a Multiple Choice Prior years' financial statements are not required to be restated if the error does not affect net income. A disclosure note only needs to be reported if the error is material. A journal entry is needed to correct any account balances that are incorrect as a result of the error. The correction is reported prospectively and previous financial statements are not revised. Prey 19 of 25 Nout