A Retrospective Adjustment Requires a Change in the

question 49

Multiple Choice

A retrospective adjustment requires a change in the

• A)prior period financial statements to look like the current period financial statements
• B)current period income to reflect the cumulative effect of new method
• C)prior period financial statements to reflect how they would have been presented had the new method been used in prior periods
• D)current period accounts in the financial statements to what they would have been had the previous method been used in the current period

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Definitions:

Characteristics

Characteristics refer to distinguishing traits, qualities, or properties that identify and differentiate individuals, objects, or concepts.

Emerging Issues Task Force

A task force within the Financial Accounting Standards Board (FASB) that identifies and provides guidance on new financial reporting issues.

Consensus Positions

Agreed-upon statements or guidelines developed from the collective views of experts or stakeholders, often used in setting standards or policies.

Statements of Position

Financial reports that provide a snapshot of an entity's financial condition at a specific point in time, including assets, liabilities, and equity.