An Item That Should Be Reported as a Prior Period

question 27

Multiple Choice

An item that should be reported as a prior period adjustment is the:

• A) Correction of an error in depreciation from last year.
• B) Payment of taxes due to a tax audit of last year's tax return.
• C) Payment of a previously recorded warranty expense.
• D) Receipt of the proceeds of a note receivable that was due last year.

---

Definitions:

Individualistic

Pertaining to the belief in the importance of the rights, autonomy, and independence of the individual over those of the collective.

United States

A country located in North America, known for its diverse cultures, significant historical impact, and influential role in global affairs.

China

A country located in East Asia, known for its vast history, culture, and as being one of the world's oldest civilizations.

Cross-Cultural

Relating to or comparing the cultures of different societies, often to identify shared traits or significant differences.