About This Chapter
Identifying & Correcting Errors in Accounting - Chapter Summary
In this chapter, how to identify and correct errors in accounting is thoroughly covered. Subjects such as the importance of finding accounting errors and restating financial statements are presented for your self-paced review. Each lesson is accompanied by a handy multiple-choice quiz so you can ensure you've understood what you've learned before moving on or taking a test. If you have questions as you work through these lessons, head over to the Dashboard and submit them to an instructor there. Once you complete this chapter, you should be ready to:
- Explain the different types of accounting errors that can occur
- Identify errors in accounting that affect the trial balance
- Detail the process and rules involved with restating financial statements
- Define changes in accounting principle and its impact
1. Identifying Accounting Errors: Types & Importance
In this lesson, we'll identify and define several accounting errors, and we'll provide some useful tips that you can use to prevent yourself from making these errors in the future.
2. Accounting Errors that Affect the Trial Balance
In this lesson, we'll discuss types of accounting errors that affect the trial balance and errors that do not affect the trial balance. We'll also go over some examples of these errors.
3. Changes in Accounting Principle: Definition & Impact
Changes in accounting principle generally arise because the rules of accounting allow different methods to be used for certain situations. We'll see when changes in principle are allowed and trace the impacts of a change on the financial statements.
4. Restating Financial Statements: Purpose, Rules & Process
A restatement is the revision and publication of one or more of a company's previously issued financial statements. We will cover when restatements are required and go through some examples.
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Other chapters within the Accounting 202: Intermediate Accounting II course
- Accounting for Fixed & Intangible Assets
- Accounting for Securities & Investments
- Accounting for Liabilities & Contingencies
- Accounting for Bonds & Notes Payable
- Accounting for Operating & Capital Leases
- Accounting for Shareholder Equity & Comprehensive Income
- Cash Flows & Disclosures
- Accounting for Corporate Income Taxes
- Pensions & Post-Retirement Benefits
- Studying for Accounting 202