Correcting Entries Are Made

question 145

Multiple Choice

Correcting entries are made

• A) at the beginning of an accounting period.
• B) at the end of an accounting period.
• C) whenever an error is discovered.
• D) after closing entries.

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which typically reduces the share price.

Par Stock

A system that establishes a minimum level of inventory that must be on hand at all times to adequately serve customer needs.

Cumulative Preferred Stock

A type of preferred stock that entitles shareholders to receive dividends in arrears before any dividends can be distributed to common stockholders.