The correction of a prior period error would only affect the account in which the error has occurred.

Name: The correction of a prior period error would only affect the account in which the error has occurred.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

The correction of a prior period error affects not only the account in which the error occurred but also the retained earnings or accumulated profits/losses, as it requires restating comparative financial statements to reflect the correction retroactively.

The Correction of a Prior Period Error Would Only Affect