Explain Why Comparability and Consistency Are Considerations for Accounting Changes

question 2

Essay

Explain why comparability and consistency are considerations for accounting changes.

Assess methods and approaches to reducing income inequality.

Understand the concepts of pre-tax and post-tax income distribution and the impact of taxes and transfers on income inequality.

Identify various forms of government assistance and their characteristics.

Comprehend income mobility and its effects on income inequality.

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Definitions:

False Cause

Refers to a logical fallacy where it is assumed that because one event follows another, the first event caused the second.

Appeal to Ignorance

A logical fallacy that occurs when one argues that a proposition must be true because it has not been proven false or vice versa.

Non Sequitur

A statement that does not logically follow from the previous argument or statement.

Appeals to Tradition

A logical fallacy where it is argued that something is right or acceptable because it has been traditionally done or believed.