CAF-1 · Chapter 10 · Question 15 of 15
During the current year, a company discovers that it accidentally completely omitted a material sales invoice from the previous year's records. This is categorized as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A material prior period error.
Explanation
Omissions or misstatements of financial information from past periods are classified as prior period errors and must be corrected retrospectively.
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