For Accounting Changes, Which of the Following Is NOT Allowed

question 31

Multiple Choice

For accounting changes, which of the following is NOT allowed?

• A) To use retrospective application for an accounting policy change without restatement, if restatement is impractical.
• B) To net accounting errors for disclosure purposes.
• C) To use prospective application for an accounting policy change, if allowed in the transition policy.
• D) To use prospective application for a change in estimate.

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Definitions:

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify, essentially the rate on the last dollar of income earned.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), expressed as a percentage.

Total Taxes

The comprehensive amount of taxes paid by an individual or entity, encompassing federal, state, and local taxes.

Individual Income Tax

A tax levied on the income of individuals or households by the government.