An error to an expense account in a prior period would adjust Retained Earnings in the new period.

Name: An error to an expense account in a prior period would adjust Retained Earnings in the new period.
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Quizplus · Accepted Answer

Adjustments for errors in prior periods are typically corrected by adjusting the beginning balance of retained earnings in the current period, to reflect the correction of the error as if it had been correctly reported in the first place.

An Error to an Expense Account in a Prior Period