The Correction of an Error in the Financial Statements of a Prior

question 108

Multiple Choice

The correction of an error in the financial statements of a prior period should be reflected, net of applicable income taxes, in the current

• A) income statement after income from continuing operations and before extraordinary items.
• B) income statement after income from continuing operations and after extraordinary items.
• C) retained earnings statement after net income but before dividends.
• D) retained earning statement as an adjustment of the opening balance.

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Definitions:

Promisee

The person to whom a promise or agreement is made, especially in a contract.

Age of Majority

The legal age at which an individual is considered an adult and capable of making legal decisions for themselves, such as entering into contracts and voting, varying by jurisdiction.

New Consideration

Additional or different consideration offered in a contract, beyond what was initially agreed upon, often required for the enforcement of modifications or new agreements.

Doubled Production

A situation or outcome where the output or production of goods or services has increased by 100 percent.