What are some examples of counterbalancing errors? What are some examples of non-counterbalancing errors? What are the differences between counterbalancing and non-counterbalancing errors? How are each handled? Does it matter if the books are closed? Why or why not?
Why do accountants make errors? What types of errors can occur? Why is it necessary to correct them? What are the ramifications of not correcting errors?
What is a change in accounting principles? How do you determine if a change in principle should be reported retroactively, currently, or prospectively? How do these changes affect the financial statements?
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