Accounting Changes Are Only Permitted When ________

question 27

Multiple Choice

Accounting changes are only permitted when ________.

• A) the effect is material
• B) adequate disclosures are made so financial statement users can restore comparability with prior-years financial statements
• C) the method used is prospective
• D) the company has not made prior changes

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Definitions:

Relatedness Needs

Desires for good interpersonal relationships.

Satisfying Growth

The achievement of growth goals that meet or exceed the expectations of stakeholders, contributing to overall satisfaction with the organization's progress.

ERG Theory

A motivational theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Alderfer's ERG Theory

A motivation theory proposing that human needs can be categorized into existence, relatedness, and growth categories.