Question: Material income statement errors that occur in the current year and do not affect the balance sheet: a. Require adjustment to retained earnings b. Affect

Material income statement errors that occur in the current year and do not affect the balance sheet:

a. Require adjustment to retained earnings

b. Affect the statement of cash flows in prior years

c. Affect future years retained earnings

d. Must be corrected

*if you could explain why, it would be much appreciated, thank you!

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