A Change in Accounting Principle Requires What Kind of Adjustment

question 29

Multiple Choice

A change in accounting principle requires what kind of adjustment to the financial statements?

• A) Current period adjustment.
• B) Prospective adjustment.
• C) Retrospective adjustment.
• D) Current and prospective adjustment.

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Definitions:

Inverted Pyramid

A style of writing often used in journalism that presents the most important information at the beginning, followed by supporting details.

AIDA Model

A marketing framework that outlines the process for achieving successful advertising and sales experiences, standing for Attention, Interest, Desire, and Action.

Traditional Authorship

The attribution of a work (literature, music, art) to an identified, individual originator or group of creators.

Inverted Pyramid

A writing structure common in news reporting, presenting the most important information first, followed by details in decreasing order of importance.