Material errors in prior periods' income statements are corrected by making an adjustment to the beginning balance of the current period's retained earnings.

Question

Quizplus · Accepted Answer

Material errors in prior periods' income statements are corrected by making an adjustment to the beginning balance of the current period's retained earnings, which impacts the overall financial statements. This is done to ensure that the financial statements are accurate and reliable for decision-making purposes.

Material Errors in Prior Periods' Income Statements Are Corrected by Making