Arguments in Favor of the Retrospective Application Method Include

question 57

Multiple Choice

Arguments in favor of the retrospective application method include

• A)the adjustments to be made when reading the financial statements are easier to determine
• B)a company's current years earnings should not be penalized (decreased)by events beyond the control of company's management
• C)all financial statements presented at a given date are consistent
• D)evaluating financial statements is easier when all principles used are known by the reader

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Definitions:

Influential Persons

Individuals who have significant impact or authority in decision-making processes or in shaping opinions and behaviors in a community or organization.

Changing Phase

The process of transitioning from one state, condition, or stage to another, often marking a significant shift or transformation.

Refreezing Phase

The final stage in the change process where new behaviors are solidified into the organization's culture, ensuring changes are maintained over time.

Organization

An arranged group of people and resources structured and managed to meet a need or pursue collective goals.