After Preparing the Financial Statements for 2011, the Accountant for the Dawson

question 51

Multiple Choice

After preparing the financial statements for 2011, the accountant for the Dawson Corporation discovered that a prior period adjustment had been omitted from the 2009 financial statements. Which of the following is most likely to require correction as a result of this oversight?

• A) Earnings per share as originally computed.
• B) Net income for 2011 as originally reported.
• C) Ending retained earnings at December 31, 2011.
• D) Extraordinary items as originally reported.

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Definitions:

Oxygen Extracted

The process of removing oxygen from a compound or an environment, often to produce a specific chemical reaction.

Spiracles

Small openings on the surface of some animals, like insects, that lead to the respiratory system, allowing gas exchange.

Ventilate

To provide with a supply of fresh air by allowing air to flow through a space, often through natural or mechanical means.

Respire

The process by which living organisms take in oxygen and release carbon dioxide, involved in energy production.