An Example of a Correction of an Error in Previously

question 38

Multiple Choice

An example of a correction of an error in previously issued financial statements is a change

• A) from the FIFO method of inventory valuation to the average cost method.
• B) in the service life of plant assets, based on changes in the economic environment.
• C) from the cash basis of accounting to the accrual basis of accounting.
• D) in the tax assessment related to a prior period.

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Definitions:

Job Evaluation Method

Techniques and procedures used to analyze and assess the relative importance of jobs within an organization, forming the basis for equitable compensation.

Policy Capturing Method

A research technique used to determine the attributes most influential in decision making by analyzing responses to a set of hypothetical scenarios.

Job Evaluation Method

A systematic process for determining the relative worth of jobs within an organization to establish fair compensation.

Job Descriptions

Documents that outline the responsibilities, duties, qualifications, and requirements of a specific role within an organization.