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A Company Failed to Make an Adjusting Entry in the Prior

Question 104

Multiple Choice

A company failed to make an adjusting entry in the prior year to accrue earned revenue.To correct this they should:


A) Correct last year's statement by increasing net income.
B) Correct this year's statements with a prior period adjustment increasing beginning retained earnings.
C) Correct this year's statements with a prior period adjustment decreasing beginning retained earnings.
D) Correct this year's statements with a prior period adjustment increasing ending retained earnings.

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