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:

Forelimb

The front limb of a vertebrate, equivalent to the arm in humans.

Brachiocephalic Artery

A major blood vessel originating from the arch of the aorta, supplying blood to the right arm and the head and neck.

Right Subclavian Artery

A major artery that supplies blood to the right arm and the right side of the head and neck.

Left Common Carotid Artery

An artery that arises directly from the aortic arch and supplies oxygenated blood to the head and neck.