Which of the following errors normally would not be automatically corrected over two accounting periods?
A)failure to record prepaid revenue
B)failure to record accrued payroll liabilities
C)failure to record depreciation expense
D)failure to count inventory in transit at year-end

Question

Quizplus · Accepted Answer

Failure to record depreciation expense does not correct itself over time because depreciation needs to be recorded each accounting period to allocate the cost of an asset over its useful life. If it's missed, it doesn't automatically correct in the next period without specific adjusting entries being made.

Which of the Following Errors Normally Would Not Be Automatically