A counterbalancing error will automatically correct itself in the next accounting period even if it is never discovered.

Name: A counterbalancing error will automatically correct itself in the next accounting period even if it is never discovered.
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Question

Quizplus · Accepted Answer

A counterbalancing error is one that will offset itself in the next accounting period, as the effects of the error reverse in the subsequent period, thus correcting the financial statements over time.

A Counterbalancing Error Will Automatically Correct Itself in the Next