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:

Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity of the good that producers are willing and able to sell.

Carrots

In a metaphorical sense, incentives or rewards used to motivate behavior; in a literal sense, a root vegetable typically orange in color.

Supply Curve

A graph showing the relationship between product price and quantity of product that a seller is willing and able to supply.

Quantity Supplied

The amount of a certain good or service that producers are willing to supply at a given price.