Which of the Following Is Characteristic of a Change in an Accounting

question 36

Multiple Choice

Which of the following is characteristic of a change in an accounting estimate?

• A) It usually need not be disclosed
• B) It does not affect the financial statements of prior periods
• C) It should be reported through the restatement of the financial statements
• D) It makes necessary the reporting of pro forma amounts for prior periods

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Definitions:

Communication Problems

Challenges and barriers in the transmission of information among individuals or groups, leading to misunderstandings, inefficiency, and conflict.

Democratic Leadership

A leadership style that involves making decisions based on the input and consensus of the whole group.

High-performance Workplace

An organizational environment that effectively combines people, technology, and processes to achieve significantly higher levels of productivity and quality.

Empowered Workplaces

Work environments where employees are provided with the autonomy to make decisions and contribute to the organization's success.