THE FOLLOWING ERROR WAS DISCOVERED IN THE YEAR AFTER THE YEAR OF ERROR (YEAR TWO) BUT BEFORE THE BOOKS WERE CLOSED IN YEAR TWO. REVIEW THE FACTS AND ANSWER THE QUESTION RELATED TO EACH FACT PATTERN. Error \#1 In 20X7 Motown received cash for the issuance of common stock. When they received the cash they debited Cash and inadvertently credited Preferred Stock. Additional facts follow. Amount of cash received for 207 Error discovered 20X8 before the books are closed. IGNORE INCOME TAXES. Original entry in 207 was: 16.) A retrospective adjustment requires a change to previously published financial statements. A. TRUE B. FALSE 17.) The three broad types of accounting changes are: A. Changes in principle, changes in estimates, and changes in reporting structure. B. Changes in principle, changes in estimates, changes in reporting entity. C. There are only two broad accounting changes: Changes in principle, and changes in estimates. D. There is only one broad accounting changes: Changes in principle. 18.) A change from the generally accepted principle of FIFO to the generally accepted principle of LIFO should be handled: A. Retrospectively B. Retrospectively with a prior period adjustment C. Prospectively D. In whichever manner the company chooses