Accounting Changes Are Often Made and the Monetary Impact Is

question 12

Multiple Choice

Accounting changes are often made and the monetary impact is reflected in the financial statements of a company even though, in theory, this may be a violation of the accounting concept of

• A)materiality.
• B)consistency.
• C)prudence.
• D)objectivity.

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Definitions:

Unconscious

The part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Freud

Sigmund Freud, the founding father of psychoanalysis, a method for treating psychopathology.

Dreams

Mental experiences during sleep involving imagery, emotions, and thoughts, often considered significant in understanding subconscious desires and processing emotions.

Defense Mechanisms

Psychological strategies used unconsciously to protect oneself from anxiety or guilt by denying or distorting reality.