The correction of an error in the financial statements of a prior period should be reflected,net of applicable income taxes,in the current
A)Income statement after income from continuing operations and before extraordinary items
B)Income statement after income from continuing operations and after extraordinary items
C)Retained earnings statement as an adjustment of the opening balance
D)Retained earnings statement after net income but before dividends

Question

Quizplus · Accepted Answer

The correction of an error in prior period financial statements should be reported as a prior period adjustment to the opening balance of retained earnings, net of tax, in accordance with accounting standards.

The Correction of an Error in the Financial Statements of a Prior