A Change in Accounting Principle from One That Is Not

question 2

Multiple Choice

A change in accounting principle from one that is not generally accepted to one that is generally accepted should be treated as

• A)an error and corrected by prior period adjustment
• B)a change in accounting principle and the cumulative effect included in net income
• C)a change in accounting principle and prior period financial statements are restated
• D)a change in accounting principle and adjustments made prospectively

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Definitions:

Climate

The average weather conditions, including temperature, precipitation, and wind, in a region over a long period.

Solar Radiation

The electromagnetic energy emitted by the sun, including visible light, ultraviolet light, and infrared radiation, which warms the Earth and enables photosynthesis.

Earth's Axis

An imaginary line around which Earth rotates, extending between the North and South Poles.

Coral Reef Community

A diverse underwater ecosystem characterized by reef-building corals, which are colonies of tiny living animals found in marine waters containing few nutrients.