A Prior Period Adjustment Should Be Reflected, Net of Applicable

question 1

Multiple Choice

A prior period adjustment should be reflected, net of applicable income taxes, in the financial statements of a business entity in the

• A) Retained earnings statement after net income but before dividends
• B) Retained earnings statement as an adjustment of the opening balance
• C) Income statement after income from continuing operations
• D) Income statement as part of income from continuing operations

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Definitions:

Forming

The initial stage of team development where members meet and start to work together for the first time, characterized by orientations and positive expectations.

Storming

A phase in group development characterized by conflict and competition, as team members assert their opinions.

Groupthink

A mode of thinking that people engage in when they are deeply involved in a cohesive group, and when members striving for unanimity override their motivation to realistically appraise alternative courses of action; in contrast to group strength, groupthink results in mistakes and failure. Causes of groupthink include the illusion of invulnerability, belief in the inherent morality of the group, rationalization, stereotyping of out-groups, self-censorship, direct pressure, mindguards, and the illusion of unanimity.

Cohesiveness

The quality of forming a united whole, particularly in the context of group dynamics and teamwork.