A Change in Accounting Principle Requires That the Cumulative Effect

question 38

Multiple Choice

A change in accounting principle requires that the cumulative effect of the change for prior periods be shown as an adjustment to

• A) beginning retained earnings for the earliest period presented.
• B) net income for the period in which the change occurred.
• C) comprehensive income for the earliest period presented.
• D) stockholders' equity for the period in which the change occurred.

---

Definitions:

Mailings Tab

A feature in word processing software, such as Microsoft Word, used for creating and managing document mailing options, like envelopes or labels.

Labels Button

A feature in software applications used for creating and formatting labels for printing.

Building Block

Predefined pieces of content or document parts that can be reused to streamline document creation in word processing software.

First Cell

The first cell is typically the top-left cell in a spreadsheet or table, often referenced as cell A1 in spreadsheet applications.