Prior period adjustments to financial statements can result from:

Prior period adjustments to financial statements can result from:

A-Changes in accounting estimates. B-Unacceptable accounting practices. C-Discontinued operations. D-Changes in tax law. E- Extraordinary items.

Answer

The correct option is (b) Unacceptable accounting practices Prior period adjustments to financial statements can result from unacceptable practices A prior period adjustment applies to the correction of an error in the financial statements of a prior period. An error in a financial statement may be caused by: Mathematical mistakes; . Mistakes in the application of GAAP or some other accounting framework; or The oversight or misuse of facts that existed at the time the financial statements were prepared. Therefore, the correct option is (b)

Hottest videos

Leave a Reply

Your email address will not be published.

Related Posts