A Change in Estimate Should

question 30

Multiple Choice

A change in estimate should

• A) result in restatement of prior period statements.
• B) be handled in current and future periods.
• C) be handled in future periods only.
• D) be handled retroactively.

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Definitions:

Expected Value

The anticipated value or return of a variable, taking into account all possible outcomes and their probabilities.

Income

Money received, especially on a regular basis, for work or through investments.

Insurance

A financial product sold by companies to individuals or entities to protect against financial loss or damage from specified risks.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 1 indicates certainty.