WHICH STATEMENT IS FALSE? A. If the net income of prior period is overstated because of the change in accounting policy, the effect is deducted from the beginning retained earnings. B. Equity is also the net assets. C. Prior period errors are shown as adjustment of the ending balance of retained earnings. If the net income of the prior period is overstated, the amount of the error uis deducted from retained earnings. D. In the conversion of preference chares into ordinary shares, if the total par or stated value of the ordinary shares is more than the original issue of the preference shares, the difference is charged to retained earnings.
WHICH STATEMENT IS FALSE? A. If the net income of prior period is overstated because of the change in accounting policy, the effect is deducted from the beginning retained earnings. B. Equity is also the net assets. C. Prior period errors are shown as adjustment of the ending balance of retained earnings. If the net income of the prior period is overstated, the amount of the error uis deducted from retained earnings. D. In the conversion of preference chares into ordinary shares, if the total par or stated value of the ordinary shares is more than the original issue of the preference shares, the difference is charged to retained earnings.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 23MCQ
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WHICH STATEMENT IS FALSE?
A. If the net income of prior period is overstated because of the change in accounting policy, the effect is deducted from the beginning
B. Equity is also the net assets.
C. Prior period errors are shown as adjustment of the ending balance of retained earnings. If the net income of the prior period is overstated, the amount of the error uis deducted from retained earnings.
D. In the conversion of preference chares into ordinary shares, if the total par or stated value of the ordinary shares is more than the original issue of the
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