A Correction in Income of a Prior-Period Requires a Debit

question 2

True/False

A correction in income of a prior-period requires a debit to the Retained Earnings account.

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Definitions:

External Attributions

The process of assigning the cause of behavior to some situation or event outside a person's control rather than to some internal characteristic.

Entity Theorists

Individuals who believe that personal attributes, such as intelligence or personality, are fixed and cannot be changed.

Incremental Theorists

Individuals who believe that abilities and intelligence can grow and improve over time with effort and practice.

Status Quo Bias

The preference to maintain current circumstances or resist changes.