When There Has Been a Change in Accounting Principle

question 55

Multiple Choice

When there has been a change in accounting principle,

• A)the old principle should be used in reporting the results of operations for the current year.
• B)the cumulative effect of the change should be reported in the current year's retained earnings statement.
• C)the change should be reported retroactively.
• D)the new principle should be used in reporting the results of operations of the current year, but there is no change to prior years.

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Definitions:

Endorphin

biochemicals produced in the brain that act as natural painkillers and mood elevators, often released during exercise, excitement, and pain.

Fast Pain Pathway

A neural pathway that carries pain signals from nociceptors to the brain quickly, typically resulting in sharp, acute pain sensations.

Myelinated Neurons

Neurons that are covered with a fatty sheath called myelin, which speeds up the transmission of nerve impulses.

Anterior Cingulate Cortex

A part of the brain located in the frontal lobe, involved in functions such as emotion regulation, decision-making, and reward anticipation.