Accounting for IGCSE & O level - Accounting Procedures (Section 4 - No. 41)
Which of the following statements are true concerning the correction of errors?
The discovery of errors will affect the calculation of profit or loss and/or the financial position of a business.
If a trial balance is prepared, a trial balance will be affected
Revised financial statements should be prepared as soon as the errors have been identified.
Corrections are only required if the errors are material.
Explanation
The discovery of errors will affect the calculation of profit or loss and/or the financial position of a business, and revised financial statements should be prepared as soon as the errors have been identified.
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