Question 38 2 pt In 2021, an error is discovered in the financial statements from a transaction that occurred in the previous year (2020). The error caused expenses to be understated. What is the proper way to correct the error? Through a prior period adjustment to expenses on the income statement. No correction is necessary as the error occurred in a previous year. Through a prior period adjustment to the beginning balance of retained earnings on the retained earnings statement Through a prior period adjustment to the ending balance of retained earnings on the balance sheet