A Prior Period Adjustment Can Arise from an Error Found

question 37

True/False

A prior period adjustment can arise from an error found that occurred in a prior period, a change is accounting entity, or a change in accounting principle.

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Definitions:

Variance

The difference between planned, budgeted, or standard costs and actual costs, often analyzed to control spending and improve financial management.

Time And Motion Studies

A business efficiency technique combining time study and motion study to standardize work processes and improve productivity.

Workers

Individuals engaged in a job or employment, contributing labor to an organization for wages.

Perform

To carry out, execute, or conduct an action or task.