Prior Period Adjustments

question 137

Multiple Choice

Prior period adjustments:

• A)always increase the beginning balance of retained earnings.
• B)are shown on the statement of retained earnings as corrections to the beginning balance.
• C)affect balance sheet accounts only, and must be included on single-step income statements.
• D)must be included as a separate line item on a multi-step income statement.

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Definitions:

Respiratory System

The system of organs responsible for taking in oxygen and expelling carbon dioxide in living organisms.

Thrombophlebitis

Inflammation of a vein accompanied by the formation of blood clots within the vein.

Cardiovascular System

The body system comprising the heart and blood vessels, responsible for circulating blood and transporting nutrients and oxygen throughout the body.

Gynecology

A branch of medicine focusing on the health of the female reproductive systems and the breasts.