Which of the following would appear as a prior period adjustment?
A) loss resulting from the sale of fixed assets
B) difference between the actual and estimated uncollectible accounts receivable
C) error in the computation of depreciation expense in the preceding year
D) loss from the restructuring of assets

Question

Quizplus · Accepted Answer

A prior period adjustment is a correction made to the financial statements of a prior period due to an error or omission. An error in the computation of depreciation expense in the preceding year would result in the need for a prior period adjustment, while the other options do not necessarily relate to a prior period.

Which of the Following Would Appear as a Prior Period