Adjustments for errors in prior periods affect retained earnings and therefore appear on the statement of retained earnings.

Name: Adjustments for errors in prior periods affect retained earnings and therefore appear on the statement of retained earnings.
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Question

Quizplus · Accepted Answer

Adjustments for errors in prior periods are made to correct the financial statements and result in changes to the ending balance of retained earnings. Therefore, they are included on the statement of retained earnings.

Adjustments for Errors in Prior Periods Affect Retained Earnings and Therefore