Error Corrections Which Involve Restatement of Prior Period Income Must

question 228

Multiple Choice

Error corrections which involve restatement of prior period income must be reported

• A)in a separate account within the equity section of the balance sheet.
• B)within "unrestricted retained earnings" on the balance sheet, with footnote disclosure to describe the appropriation.
• C)as a prior period adjustment on the statement of changes in retained earnings.
• D)only within the footnotes accompanying the financial statements.

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