Prior period adjustments to financial statements can result from:
A)Changes in estimates.
B)Using unacceptable accounting principles.
C)Discontinued operations.
D)Changes in tax law.
E)Extraordinary items.

Question

Quizplus · Accepted Answer

Prior period adjustments result from errors or omissions in previously issued financial statements. These errors can result from using unacceptable accounting principles, misapplication of accounting principles, math errors, or fraud. Changes in estimates, discontinued operations, changes in tax law, and extraordinary items are not examples of prior period adjustments.

Prior Period Adjustments to Financial Statements Can Result From