All of the Following Statements Regarding Changes in Accounting Principles

question 146

Multiple Choice

All of the following statements regarding changes in accounting principles are true except which of the following?

• A) Most changes in accounting principles are only reported in current periods when the principle change takes place.
• B) Changes in accounting principles are allowed when new principles are preferable to old ones.
• C) Most changes in accounting principles are retroactively reported.
• D) Consistency is one of the biggest concerns when a change in accounting principle is undertaken.

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Definitions:

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving making observations, forming a hypothesis, conducting experiments, and making conclusions.

Developing

A descriptor for countries or regions undergoing economic, industrial, and social progress, often with rapid growth and improvement in living standards.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Human Development

The multidisciplinary study of how people change and how they remain the same over time.