Which of the Following Statements Concerning a Change in Accounting

question 41

Multiple Choice

Which of the following statements concerning a change in accounting policy is true?

• A) If a change in accounting policy is adopted retroactively, the company needs to restate closing retained earnings.
• B) If a change in accounting policy is adopted retroactively, the company needs to restate opening retained earnings.
• C) If a change in accounting policy is adopted prospectively, the company needs to restate closing retained earnings.
• D) If a change in accounting policy is adopted prospectively, the company needs to restate opening retained earnings.

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Definitions:

Unpleasant Situation

A scenario or event that is disagreeable, uncomfortable, or causes distress to an individual.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise.

External Rewards

Benefits or incentives provided by an external source, such as money, praise, or recognition, that motivate behavior.

Psychology

The scientific study of the mind and behavior, encompassing various aspects of human experience, mental functions, and characteristics.