One of the Disclosure Requirements for a Change in Accounting

question 9

True/False

One of the disclosure requirements for a change in accounting policy is to show the cumulative effect of the change on retained earnings as of the beginning of the earliest period presented.

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Definitions:

T-statistic

A type of statistic used in hypothesis testing, calculated as the ratio of the departure of the estimated value of a parameter from its hypothesized value to its standard error.

Sample Size

The count of data points or observations gathered in a research study for deriving conclusions.

Population Mean

The average of a set of characteristics (e.g., measurements, scores) for every individual or entity in the entire population.

Standard Error

The standard deviation of the sample mean distribution or an estimate of that standard deviation.