Can you assist me getting started with this assignment?
Question 1: 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?
Question 2: 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?
Question 3: What is a change in accounting principle? How do you determine if a change in principle should be reported retroactively, currently, or prospectively? How do these changes affect the financial statements?