A Prior Period Adjustment Appears in the Financial Statements of the Current

question 44

Multiple Choice

A prior period adjustment appears in the financial statements of the current year when:

• A)An error was made in computing the net income of the current period.
• B)An error was made in measuring the net income of a previous year or years.
• C)An extraordinary loss in a prior year was included among normal results of operations in the prior year.
• D)Earnings per share figures from prior years are restated to reflect the increased number of shares outstanding due to a stock split or a stock dividend.

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Definitions:

Program

A set of instructions that a computer follows to perform specific tasks or operations.

Operating System Program

An operating system (OS) manages computer hardware and software resources and provides common services for computer programs.

Application Program

A computer software designed to help the user perform singular or multiple related specific tasks.

Technology

The application of scientific knowledge for practical purposes, especially in industry and the creation of devices, systems, or methods.