Prior-period adjustments appear on the statement of retained earnings.

Name: Prior-period adjustments appear on the statement of retained earnings.
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Prior-period adjustments are changes made to the financial statements of a prior period due to errors or omissions. The impact of these adjustments is reflected in the statement of retained earnings which shows changes in the company's retained earnings balance from the beginning to the end of the period, including the impact of prior-period adjustments.

Prior-Period Adjustments Appear on the Statement of Retained Earnings