When There Has Been a Change in Accounting Principle

question 199

Multiple Choice

When there has been a change in accounting principle,

• A) the old principle should be used in reporting the results of operations for the current year.
• B) the cumulative effect of the change should be reported in the current year's retained earnings statement.
• C) the change should be reported retroactively.
• D) the new principle should be used un reporting the results of operations of the current year, but there is no change to prior years.

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Definitions:

Listen

The act of actively paying attention and making a conscious effort to hear and process what is being said.

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An individual who has undergone a surgical procedure called corpus callosotomy, separating the two hemispheres of the brain, often done to treat severe epilepsy, affecting communication between the hemispheres.

Severe Epilepsy

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