Which of the Following Statements Is True About a Company

question 115

Multiple Choice

Which of the following statements is true about a company making an accounting change in its financial statements?

• A)It must disclose the effect of the change on net income.
• B)It is generally entitled to make one accounting change per year.
• C)Companies can never make accounting changes because of the consistency characteristic.
• D)Management must ask permission from the federal government.

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Definitions:

Common-sense View

The intuitive or ordinary understanding of a situation or concept, without the need for scientific investigation.

Emotional Experience

The complex state of feeling resulting from the interaction between an individual's subjective cognitive interpretations and physiological responses.

Dangerous Situation

A scenario or environment where there is a significant risk of harm or injury.

Cannon-Bard Theory

A theory of emotion that proposes emotions and physiological responses occur simultaneously and independently, rather than sequentially.