What is a prior-period adjustment?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What is a prior-period adjustment?
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Statement of retained earnings: This is a financial statement that shows the amount of net income retained by a company at a particular point of time for reinvestment and to pay its debts and obligations. It shows the amount of retained earnings at the end of an accounting period that is not paid as dividends to shareholders rather kept for future growth and settlements.
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