All of the Following Should Occur as a Result of a Prior

question 62

Multiple Choice

All of the following should occur as a result of a prior period adjustment EXCEPT

• A) the cumulative effect of the correction or change should be reported as an adjustment to opening retained earnings.
• B) all prior period financial statements should be corrected or restated.
• C) the effects of the change should be detailed and disclosed in a note to the financial statements.
• D) the unadjusted balance of retained earnings should be presented on the balance sheet.

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Definitions:

Overstretching

The act of extending muscles, tendons, or limbs beyond their normal capacity, which can lead to injury.

Contusion

A bruise caused by a blunt force injury that damages blood vessels under the skin without breaking the skin surface.

Sprain

An injury to a ligament caused by overstretching or tearing, often affecting joints such as the ankle or wrist.

Initial Encounter

The first visit or consultation for a particular health issue or condition, marking the beginning of the treatment or diagnostic process.