Prior period adjustments are reported

A) in the footnotes of the current year's financial statements.
B) on the current year's balance sheet.
C) on the current year's income statement.
D) on the current year's retained earnings statement.

Prior Period Adjustments

Corrections of errors in financial statements of previous periods or adjustments for changes in accounting policies, presented in the current period's equity section.

Retained Earnings Statement

A financial statement that outlines the changes in retained earnings for a specific period.