Question: Justin Corporation discovered an error in their 2011 financial statements after the statements were issued. This requires that a. The cumulative effect of the error

Justin Corporation discovered an error in their 2011 financial statements after the statements were issued. This requires that

a. The cumulative effect of the error is reported on the 2012 income statement as a cumulative effect of change in accounting principle.

b. The cumulative effect of the error is reported in the 2012 beginning balance of each related account.

c. The financial statements are restated to reflect the correction of period-specific effects of the error.

d. An adjustment to beginning retained earnings in 2012 with a footnote disclosure describing the error.

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