Answer:
c. An addition to (or a deduction from) the beginning balance of retained earnings
Explanation:
A prior period adjustment is the correction of an accounting error that occurred in the past and was reported on a prior year's financial statement, net of income taxes. Prior period adjustment are reported in the statement of retained earnings as an increase or a decrease in the beginning retained earnings. Therefore, the adjusted beginning retained earnings balance is the amount that retained earnings would have been if the error had not been made.
The statement " Continued losses in an industry will cause some firms to reduce output or eventually leave the industry " is True
Explanation:
The goal of all businesses is to reduced risk and reduce expenses while retaining productivity and deliver a good product at a consistent rate and cost.
Although company owners know how much they can deliver under optimum organisational and financial conditions, this volume is seldom consistently produced by most firms. Unexpected events inevitably lead to less than the expected amount.
For example, a computer may stop working, and employees can stop producing while waiting for machine repairs. In other situations, production is slowed down or halted by planned events.
Explanation:
The journal entry to record the estimated uncollectible accounts is shown below:
Bad debt expense Dr $7,500
To Allowance for uncollectible accounts $7,500
(Being the bad debt expense is recorded)
The computation is shown below:
= Estimated amount for uncollectible accounts - credit balance in allowance for uncollectible accounts
= $12,000 - $4,500
= $7,500
Answer:
Answer is option A, i.e. Strategy analysis.
Explanation:
Strategy analysis can be understood as a process of evaluating the environment in which the business operates. This environment includes both internal as well as external environment. For a business to be successful, it is important that both internal, as well as the external environment, should be taken into consideration. Therefore, the correct answer is option A.