When an Entity Changes Its Accounting from One Generally Accepted

question 17

Multiple Choice

When an entity changes its accounting from one generally accepted method to another generally accepted method:

• A)financial statements of all prior years must be restated to maintain comparability.
• B)an explanatory note stating that the change was approved by the Financial Accounting Standards Board is required.
• C)the dollar effect of the change on both the balance sheet and income statement must be disclosed.
• D)accounting changes like this are not permitted.

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Definitions:

Eating Disorders

Mental disorders defined by abnormal eating habits that negatively affect a person's physical or mental health.

Childhood Sexual Abuse

A form of sexual abuse involving a child and an older person, often resulting in long-term psychological and emotional impact.

Weight Restoration

The process of gaining back weight lost due to an illness or eating disorder, aiming to return to a healthy weight for recovery.

Anorexics

Individuals suffering from anorexia nervosa, an eating disorder characterized by an obsessive fear of gaining weight and severely restricted food intake.