Where a Change in Accounting Estimates Occurs,the Following Should Be

question 62

Multiple Choice

Where a change in accounting estimates occurs,the following should be disclosed.

• A) The fact that the amount of the effect on future periods will not be disclosed because estimating that amount is impracticable.
• B) The reason for the change and comparative data to show the impact with and without the change.
• C) The nature of the change and the impact on previous income statements.
• D) The fact that the amount of the effect on future periods will not be disclosed because estimating that amount is impracticable and the reason for the change and comparative data to show the impact with and without the change.
• E) None of the given answers.

Understand the concept of LMX (Leader-Member Exchange) theory and its impact on leader-member relationships.

Recognize the phases in the leadership making process and their significance.

Identify the factors that contribute to high-quality leader-member exchanges.

Understand the potential for discrimination and the existence of in-groups and out-groups within LMX theory.

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Definitions:

Return Of Capital

A payment to investors that returns some of their original investment, thus reducing the investor's cost basis in the investment.

Capital Gain

The profit earned from the sale of an asset that has increased in value over its purchase price, often applied to stocks, bonds, and property.

Stockholder Basis

The amount invested in a company's stock, used for tax purposes to determine gain or loss on the sale or disposition of the stock.

Taxable Income

The sum of earnings that determines the tax liability of a person or business to the government, once all deductions and exemptions have been applied.