Which of the Following Would Appear as a Prior Period

question 123

Multiple Choice

Which of the following would appear as a prior period adjustment?

• A) loss resulting from the sale of fixed assets
• B) difference between the actual and estimated uncollectible accounts receivable
• C) error in the computation of depreciation expense in the preceding year
• D) loss from the restructuring of assets

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Definitions:

Time Deposits

Savings accounts or certificates of deposit that hold a fixed sum of money for a specified period of time, during which the depositor cannot withdraw the funds without penalty.

Required Reserves

The minimum amount of reserves a bank must hold as mandated by regulatory authorities, based on a percentage of the bank's deposit liabilities.

Demand Deposits

Bank accounts from which money can be withdrawn at any time without any notice to the bank.

Original Maturity

The original length of time until a financial instrument, such as a bond or loan, is due to be repaid in full.