The Bourbon Street Ice Cream Company discovers that depreciation expense was overstated last year. How should this
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Question:
The Bourbon Street Ice Cream Company discovers that depreciation expense was overstated last year. How should this discovery be reported in the current year?
a. As a reduction in the current year's depreciation expense
b. As an increase to the retained earnings beginning balance
c. As a footnote only to the current year's financial statements
d. As a miscellaneous item in the Other Revenue/Expense section of the income statement
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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