Prior Period Adjustments

question 188

Multiple Choice

Prior period adjustments

• A) may only increase retained earnings.
• B) may only decrease retained earnings.
• C) may either increase or decrease retained earnings.
• D) do not affect retained earnings.

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Definitions:

Racial/Ethnic Group

A category of people who identify with each other based on common ancestral, social, cultural, or national experiences, with recognition that race is a socially constructed concept.

Native Americans

Indigenous peoples of the United States, including various tribes, communities, and ethnic groups that were present in the territory before European colonization.

Renting Homes

The process of paying a landlord for the use of a residence over a specified period, without obtaining ownership.

Income

Income is the monetary payment received by an individual or household for work or through investments, pensions, or other sources, which is used for daily living expenses and savings.