If a Company Adopts a New Accounting Principle, It Must

question 44

Multiple Choice

If a company adopts a new accounting principle, it must justify the change on the grounds that the new principle

• A) increases the relevance of the financial statements.
• B) increases the reliability of the financial statements.
• C) is preferable to the old principle.
• D) increases the transparency of the financial statements.

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Definitions:

Industrial Workers

Employees involved in the manufacturing sector, often in factories, who contribute to the production of goods.

Collective Bargaining

The process of negotiations between an employer and a group of employees to regulate working conditions.

CIO's Philosophy

The core beliefs and principles underlying the Congress of Industrial Organizations, focusing on industrial unionism and the organization of all workers within an industry, regardless of craft, to promote workers' rights and collective bargaining.