A Prior Period Adjustment That Corrects Profit of a Prior

question 21

Multiple Choice

A prior period adjustment that corrects profit of a prior period requires that an entry be made to

• A) an income statement account.
• B) a current year revenue or expense account.
• C) the retained earnings account.
• D) an asset account.

---

Definitions:

M.B.A.

Master of Business Administration, a graduate-level degree focusing on business management, strategy, and leadership.

Formal Report

A structured document that presents information and analyses on specific topics in a professional and systematic manner.

Margin

The edge or border of something, often used in the context of the blank space surrounding the text on a page.

Salutation

A greeting used in communication, often at the beginning of a letter or email, addressing the recipient.