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Define the Term "Prospective Adjustment

question 20

Essay

Define the term "prospective adjustment." Which type of accounting changes is it applied to?


Definitions:

Incremental Change

A method of making changes gradually in small, manageable steps instead of through one large comprehensive shift.

Excise Tax

A tax imposed on specific goods, services, or activities, either as a fixed amount per unit (quantity tax) or as a percentage of the price (ad valorem tax).

Strategic Change

The process of implementing new strategies in an organization to address significant shifts in its internal or external environment.

Diversity Of Labor

The inclusion of a wide range of employees from different backgrounds, cultures, and experiences in the workforce.

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