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:

Lewin

A psychologist known for his contributions to social, organizational, and applied psychology, including the development of field theory.

Approach/Approach Conflict

A decision-making dilemma involving two desirable options, causing psychological stress.

Lewin

Kurt Lewin, a pioneering psychologist known for his work in group dynamics, social change, and field theory.

Avoidance/Avoidance Conflict

A psychological dilemma where an individual must choose between two equally undesirable options or outcomes.