Which of the Following Is Characteristic of a Change in Accounting

question 29

Multiple Choice

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

• A) Requires the reporting of pro forma amounts for prior periods
• B) Does not affect the financial statements of prior periods
• C) Never needs to be disclosed
• D) Should be reported by retrospectively adjusting the financial statements for all years reported,and reporting the cumulative effect of the change in income for all preceding years as an adjustment to the beginning balance of retained earnings for the earliest year reported

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Definitions:

Spinal Reflex Arc

A neural pathway that mediates a reflex action involving the spinal cord, consisting of at least one sensory neuron and one motor neuron.

Sensory Neuron

A type of neuron that transmits signals from sensory receptors towards the central nervous system, allowing it to perceive stimuli.

Motor Neuron

A type of neuron responsible for conveying impulses from the brain or spinal cord to muscles or glands, causing them to contract or secrete, respectively.

Sensory Receptor

Specialized cells or nerve endings that respond to changes in the environment by generating electrical signals.