Companies record corrections of errors from prior periods as an adjustment to the beginning balance of retained earnings in the current period.

Name: Companies record corrections of errors from prior periods as an adjustment to the beginning balance of retained earnings in the current period.
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Question

Quizplus · Accepted Answer

This statement is true. Any corrections made to errors from prior periods are adjusted to the beginning balance of retained earnings in the current period as a way to ensure accurate financial statements.

Companies Record Corrections of Errors from Prior Periods as an Adjustment