Changes in Accounting Principle Are Allowed Where

question 70

Multiple Choice

Changes in accounting principle are allowed where

• A) they are required by a primary source of GAAP.
• B) they result in reliable and more relevant information.
• C) the company reports less favourable results under the new policy.
• D) both a and b are correct.

---

Definitions:

Skewed to the Right

A description of a distribution of data where the right tail (higher values) is longer than the left tail, indicating a concentration of lower values.

Critical Region

The critical region is a set of values for which the null hypothesis is rejected in hypothesis testing; it specifies the threshold at which the observed results are deemed statistically significant.

Multinomial Distribution

A statistical distribution that generalizes the binomial distribution for variables that can take on more than two categories.

Proportions

A statistical measure that describes the size of a part in relation to the whole, often expressed as a fraction or percentage.