A Change in Accounting Estimate Effected by a Change in Accounting

question 41

Multiple Choice

A change in accounting estimate effected by a change in accounting principle should be reported as

• A)a change in accounting principle
• B)a change in accounting estimate and a change in accounting principle
• C)a change in accounting estimate
• D)neither a change in accounting estimate nor a change in accounting principle

---

Definitions:

Mound-Shaped

Refers to a symmetrical, bell-shaped curve often associated with the normal distribution in statistics.

Standard Deviation

An indicator that quantifies the spread or variability among a collection of numbers, showing the extent to which these numbers differ from their average.

Mean

The mathematical mean of a collection of numbers, obtained by summing them up and then dividing by the total count of the numbers.

Mean Salary

The average amount of income earned by employees in a particular job, sector, or region, calculated by summing all salaries and dividing by the number of employees.