8. Which of the following is a correct statement concerning a PPA [Prior Period Adjustment]? a. A PPA is presented on the Statement of Cash Flows only b. A PPA is never recorded but requires disclosure to the financial statements c. A PPA may be recorded for a computational error related to a prior period which was discovered during the current period d. A PPA is presented on the Income Statement

8. Which of the following is a correct statement concerning a PPA [Prior Period Adjustment]? a. A PPA is presented on the Statement of Cash Flows only b. A PPA is never recorded but requires disclosure to the financial statements c. A PPA may be recorded for a computational error related to a prior period which was discovered during the current period d. A PPA is presented on the Income Statement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Generally accepted methods of accounting for a change in accounting principle include O ncluding the cumulative effect of the change in current period net income. restating prior years' financial statements presented for comparative purposes. O making a prior period adjustment. O prospective changes.