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:

Grapefruits

A large, round citrus fruit with a rich, slightly bitter flavor, known for its health benefits and use in diets and cooking.

Indifference Curves

Curves representing combinations of two goods between which a consumer is indifferent, meaning any combination along the curve gives the same level of satisfaction.

Bundle

In economics, a combination of various goods and services that a consumer might consider purchasing.

Constants

Fixed values in mathematical equations or models that do not change under different conditions.