Question: When an error is discovered in prior financial statements: A) prior financial statements are restated to their correct amounts. B) assets and liabilities in the

When an error is discovered in prior financial statements:

A) prior financial statements are restated to their correct amounts.

B) assets and liabilities in the current period are restated to their appropriate levels.

C) prior income effects are adjusted to the current period's beginning balance of retained earnings.

D) all of these answer choices are correct.

With Explanation please.

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