Prior period adjustments ________
A) always increase the beginning balance of retained earnings
B) are shown on the statement of retained earnings as corrections to the beginning balance
C) can be ignored because the financial statements have already been issued
D) must be recorded in the period in which the error occurred
B
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Under the ________, the courts generally avoid second-guessing corporate executives and let stand any business decisions made in good faith that are uninfluenced by personal considerations
A) business judgment rule B) corporate opportunity doctrine C) conflict of interest rule D) expense item rule
Firms that require funds from external sources can obtain them ________
A) through financial institutions B) from central bank directly C) through forex market D) by issuing T-bills