A Prior Period Adjustment Should Be Reported as an Adjustment

question 137

True/False

A prior period adjustment should be reported as an adjustment to the retained earnings balance at the beginning of the period in which the adjustment was made.

---

Definitions:

Primary Sector

The sector of an economy focused on the extraction and collection of natural resources, such as agriculture, mining, and forestry.

Secondary Sector

The portion of the economy that includes industries involved in the processing, transforming, and manufacturing of goods from raw materials.

Tertiary Sector

The segment of the economy that provides services to consumers, including retail, health care, and education.

Charlie Chaplin

An iconic British film actor and filmmaker, known for his contributions to the silent film era and his character "The Tramp."