Which of the following is an accounting error?
A)A company changes from the gross method to the net method of recording cash discounts.
B)A private corporation previously using ASPE chooses to adopt IFRS.
C)Costs not related to the construction of a building were included in the building cost.
D)A patent was expected to provide protection of intellectual property for the full legal life of 20 years, but technological advances made the patent obsolete after only 12 years.

Question

Quizplus · Accepted Answer

Including costs not related to the construction of a building in the building cost is an accounting error because it misallocates expenses, leading to inaccurate financial statements.

Which of the Following Is an Accounting Error