A Prior-Period Adjustment That Corrects Income of a Prior Period

question 104

Multiple Choice

A prior-period adjustment that corrects income of a prior period requires an entry to:

• A) a liability account.
• B) an income statement account.
• C) retained earnings.
• D) an expense account.

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Definitions:

Professional Performance

The level of competency and skill demonstrated by a professional in their field of work.

Systemic Theory

A theory that views any system (e.g., ecological, biological, social) as a complex set of elements that interact with each other and must be understood as a whole.

Communication

The act or process of using words, sounds, signs, or behaviors to express or exchange information or to express ideas, thoughts, feelings, etc., to someone else.

Community Sanction

A form of punishment imposed by a court for criminal activities that is served in a community rather than in jail or prison, including services like probation or community service.