In the Year of a Change in an Accounting Policy

question 114

True/False

In the year of a change in an accounting policy, the change and its impact must be disclosed in the notes to the financial statements.

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Definitions:

Real Gross Domestic Product

Measures the value of all final goods and services produced within a country's borders in a given time period, adjusted for inflation, reflecting the actual productivity of an economy.

GDP Price Index

An economic metric that measures the changes in prices of all goods and services included in Gross Domestic Product.

Nominal Gross Domestic Product

Gross Domestic Product measured in current market prices, not adjusted for inflation.

Real Gross Domestic Product

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year.