Prior-period adjustments are made when an error occurs in one period and it is corrected in a later period.

Name: Prior-period adjustments are made when an error occurs in one period and it is corrected in a later period.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Prior-period adjustments are made to correct errors that occurred in a prior period and were discovered and corrected in a later period. This adjustment is necessary to ensure that the financial statements provide accurate and reliable information to users.

Prior-Period Adjustments Are Made When an Error Occurs in One