Which Will Never Result in an Adjustment of a Prior

question 83

Multiple Choice

Which will never result in an adjustment of a prior period's financial statements?

• A)a material error
• B)a change in accounting principle
• C)a change in the estimated life of a depreciable asset
• D)the realization of income tax benefits of preacquisition operating loss carryforward of a purchased subsidiary

---

Definitions:

Purely Competitive Firm

A company operating in a market where there are many buyers and sellers offering homogeneous products, leading to the inability to influence market price.

Total Revenue

The total income received by a firm from the sale of its goods or services.

Marginal Revenue

Marginal revenue is the additional income generated from selling one more unit of a good or service.

Marginal Revenue

The rise in income achieved by selling an extra unit of a product.