Which of the Following Statements Is True with Respect to Financial

question 188

Multiple Choice

Which of the following statements is true with respect to financial statement reporting a change in accounting principle?

• A) Comparability across periods is impaired
• B) Only a footnote is required to report the change
• C) Changes in both depreciation methods and inventory methods are reported retroactively.
• D) Management must show that the new accounting principle is preferable to the old method.

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Definitions:

Bureaucracies

are complex organizational structures designed to manage and administer the policies, rules, and regulations of larger institutions or governments through a hierarchical system of authority.

Authority Structures

Refer to the systems and frameworks through which power and authority are organized, distributed, and executed within a society or organization.

Democratic Leadership

Offers more guidance than the laissez-faire variety but less control than the authoritarian type. Democratic leaders try to include all group members in the decision-making process, taking the best ideas from the group and molding them into a strategy with which all can identify. Outside of crisis situations, democratic leadership is usually the most effective leadership style.

Group Loyalty

The sense of commitment, support, or allegiance individuals feel towards a specific collective or group to which they belong.