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:

Solid Object

A physical item that maintains a consistent shape and volume under normal conditions, unlike liquids or gases.

Assembling

The process of putting together various elements or parts to form a complete unit or system.

Model Ship

A scaled-down replica of a ship, often used for display or hobby purposes.

Egocentrism

The inability to differentiate between oneself and other people, often leading to viewing the world from only one's perspective.