Financial Accounting
What steps should be taken to correct financial statements when a prior period error is discovered?
A company discovers \$10,000 of unrecorded revenue from last year. How should retained earnings be adjusted?
Which of the following is a reason for making a prior period adjustment?
Which account is debited to correct an overstated retained earnings balance due to an unrecorded expense?
Why is it necessary to adjust retained earnings for a change in inventory costing methods?
If a company switches from FIFO to LIFO and the cumulative effect is a \$30,000 increase in inventory, what is the impact on retained earnings?
How is retained earnings adjusted for a change in inventory costing methods?
What happens to retained earnings if an expense is unrecorded in a previous period?
Which of the following scenarios would require a prior period adjustment?
What is the cumulative effect of a change in accounting principle?
