Which One of the Following Would Not Be a Required

question 41

Multiple Choice

Which one of the following would not be a required disclosure for a change in accounting principle?

• A) description of the nature of the change
• B) management's justification for the change
• C) the estimated effect on future earnings per share
• D) cumulative effect of the change on retained earnings for the first year presented

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Definitions:

Equipment-Replacement Decision

The process of determining whether to repair, maintain, or replace equipment, considering factors like costs, efficiency, and technological advancements.

Differential Costs

The difference in cost between two alternative decisions, or a change in expenses that would occur due to a particular choice.

Differential Analysis

The area of accounting concerned with the effect of alternative courses of action on revenues and costs. Also called incremental analysis.

Unprofitable Segment

A part of an organization that consistently fails to contribute a positive net income or adds a financial loss to the company's overall performance.