A Company Should Report a Cumulative Effect of an Accounting

question 7

Multiple Choice

A company should report a cumulative effect of an accounting principle change when

• A)consistency has been violated.
• B)errors are made and subsequently corrected.
• C)FASB mandates a change from one method to another.
• D)international reporting standards differ from GAAP methods.

---

Definitions:

Average Income

A measure of the total income received by the average individual or household within a specified demographic or economic unit over a given period.

Female-headed Households

Families or households where the primary caregiver or head is a woman.

Poverty

A state or condition in which an individual or community lacks the financial resources and essentials for a minimum standard of living.

Libertarians

Individuals who advocate for minimal government intervention in personal and economic matters, emphasizing individual liberty and the free market.