All of the Following Statements Regarding Changes in Accounting Principles

question 146

Multiple Choice

All of the following statements regarding changes in accounting principles are true except which of the following?

• A) Most changes in accounting principles are only reported in current periods when the principle change takes place.
• B) Changes in accounting principles are allowed when new principles are preferable to old ones.
• C) Most changes in accounting principles are retroactively reported.
• D) Consistency is one of the biggest concerns when a change in accounting principle is undertaken.

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Definitions:

Adolescence

The transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Childhood

The period of life from birth to adolescence, characterized by growth, development, and learning.

Adulthood

The period in the human lifespan when an individual is considered to be fully developed and mature, both physically and mentally.

Narcissism

A personality trait characterized by an inflated sense of self-importance, need for admiration, and lack of empathy for others.