Some errors are counterbalanced by off-setting errors in the ordinary bookkeeping process in the next period.Such errors misstate net income in both periods.

Question

Quizplus · Accepted Answer

This statement is true. When an error is made in one period, it can sometimes be corrected by an off-setting error in the next period, but this means that net income will be misstated in both periods.

Some Errors Are Counterbalanced by Off-Setting Errors in the Ordinary