Question

22.Prior period adjustments can either be added or subtracted in the Retained Earnings Statement.

Select one:

True

False

21.Companies only restrict retained earnings to comply with contractual requirements or current necessity.

Select one:

True

False

23.The transaction approach of income measurement focuses on the income-related activities that have occurred during the period.

Select one:

True

False

Answer 1

Answer

22. True

Yes, the prior period adjustments can be either added or subtracted from the opening balance of Retained earnings.

21. False

The companies does not only restricts retained earnings to comply with contractual requirements or current necessity. It also accounts the other reserves created.

23. True

Yes, the transaction approach of income measurement focuses on the income related activities occurred during the period.

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