What Are the Three Type of Accounting Changes Defined by GAAP;

question 11

Essay

What are the three type of accounting changes defined by GAAP; provide a brief explanation of each?

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Definitions:

Standard Deviation

A measure of the dispersion or variation in a set of values, used to quantify the degree of variation or diversity.

Equilibrium

The state in which market supply and demand balance each other, resulting in stable prices.

Company-Specific Risk

Risk that affects a particular company due to factors such as management decisions, product demand, or regulatory changes.

Diversified Portfolios

Investment strategies that involve spreading investments across various financial instruments, industries, and other categories to reduce risk.