Accounting for IGCSE & O level - Accounting Procedures (Section 25 - No. 23)
When an error is discovered and corrected, what is the immediate impact on the accounting equation (Assets = Liabilities + Equity)?
The equation remains unaffected.
One or more components of the equation will change to reflect the correction.
Only the assets are affected.
Only the liabilities are affected.
Explanation
Corrections directly impact asset, liability, or equity accounts, altering the equation.
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