Which of the Following Is an Example of a Change

question 62

Multiple Choice

Which of the following is an example of a change in accounting principle that is accounted for retrospectively?

• A) an Accounting Standards Update has been issued and a former principle is no longer generally accepted
• B) initial adoption of a generally accepted accounting principle because of events or transactions occurring for the first time
• C) change to a generally accepted accounting principle from a principle that is not generally accepted
• D) modification of an accounting principle for transactions or events that are clearly different in substance from those previously occurring

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Definitions:

Lower Prices

A decrease in the cost at which goods or services are sold, enhancing affordability.

Better Products

Refers to goods that are of higher quality, more reliable, or offer greater value than competitors.

Market Power

The power of a firm to control the market price of its product. A monopoly has the greatest degree of market power.

Consumer Data

Information relating to individuals who purchase or show interest in products and services, including personal details, buying habits, and preferences.