A Company Can Change to a New Method of Accounting

question 146

Multiple Choice

A company can change to a new method of accounting if management can justify that the new method results in

• A)more meaningful financial information.
• B)a higher net income.
• C)a lower net income for tax purposes.
• D)less likelihood of clerical errors.

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Definitions:

Relevant Environmental Factors

External conditions or influences that significantly impact an individual's behavior, decisions, or well-being.

Ecomap

A graphical representation that shows the ecological system of an individual within the context of their family, social, and community relationships.

Genogram

A graphical representation of a family tree that displays detailed data on relationships among individuals.

Socially Sanctioned Institution

An organization or system that is accepted and supported by society or a community for fulfilling certain roles or functions.