When Making a Retrospective Adjustment, All of the Following Steps

question 44

Multiple Choice

When making a retrospective adjustment, all of the following steps are included except

• A)computing the cumulative effect of the new accounting principle as of the beginning of the first period presented
• B)adjusting the current period net income for the cumulative effect of the change
• C)adjusting the carrying value of impacted assets and liabilities
• D)restating the financial statements of each period presented to reflect the effects of the change

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Definitions:

IQ Scores

Numerical measurements derived from standardized tests designed to assess human intelligence and cognitive abilities relative to a statistical normal distribution.

Crystallized Intelligence

The ability to use knowledge gained from past experiences, recognizing it as a form of intellectual ability that tends to improve over a person's lifespan.

Fluid Intelligence

Intellectual ability that reflects basic information processing skills, including working memory, processing speed, and the ability to detect relations among stimuli and draw inferences; underlies learning, is not influenced by culture, and reflects brain functioning.

Pragmatic Intelligence

The ability to solve real-world problems by adapting to, shaping, or selecting environments.