A Company Is Justified in Changing from One Generally Accepted

question 48

Multiple Choice

A company is justified in changing from one generally accepted accounting principle to another generally accepted accounting principle only if

• A)the change decreases the entity's reported net income
• B)the change both improves the financial statement presentation and increases the entity's reported net income
• C)the change produces more informative financial statements
• D)approval is first obtained from the Financial Accounting Standards Board

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Definitions:

AntiAromatic

Compounds that have conjugated pi electron systems with 4n pi electrons, which destabilize the molecule, making it less stable than if the pi electrons were localized.

NonAromatic

Refers to organic compounds that do not possess the special stability associated with cyclic, planar systems that follow Huckel’s rule of delocalized electrons.

π Network

A system of conjugated pi bonds within a molecule that allows for the delocalization of pi electrons across all the adjacent aligned p orbitals.

Extremely Slow Rate

Describes a process or reaction that proceeds at a very slow pace, often due to kinetic barriers or unfavorable conditions.