A Company Failed to Make an Adjusting Entry in the Prior

question 113

Multiple Choice

A company failed to make an adjusting entry in the prior year to accrue earned revenue.To correct this they should:

• A)Correct last year's statement by increasing net income.
• B)Correct this year's statements with a prior period adjustment increasing beginning retained earnings.
• C)Correct this year's statements with a prior period adjustment decreasing beginning retained earnings.
• D)Correct this year's statements with a prior period adjustment increasing ending retained earnings.

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Definitions:

Cardiac Defect

An abnormality in the structure of the heart that is present from birth, potentially affecting the walls, valves, arteries, or veins of the heart.

Bacterial Endocarditis

A serious condition involving the inflammation of the inner layers of the heart, often caused by bacterial infection.

Streptococcus Viridans

A group of bacteria commonly found in the mouth and respiratory tract, which can sometimes cause infection, especially in people with weakened immune systems.

Causative Agent

A factor, such as a microorganism or chemical, that is the direct cause of a disease or condition.