Which of the Following Would Be a Reason Where IASB

question 21

Multiple Choice

Which of the following would be a reason where IASB would permit companies to change accounting policy?

• A)The change would allow the company to present a more favorable profit picture.
• B)The change would result in the financial statements providing more reliable and relevant information about a company`s financial position, financial performance, and cash flows.
• C)The change is made by the internal auditor.
• D)The change will be long-term.

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Definitions:

Adulthood

A phase of life characterized by the completion of physical growth, the assumption of adult responsibilities, and legal recognition of majority.

Crystallized Intelligence

The ability to use skills, knowledge, and experience gained over time. It contrasts with the ability to reason quickly and abstractly.

Fluid Intelligence

Refers to the ability to think logically and solve problems in novel situations, independent of acquired knowledge.

Age

The length of time that an individual has lived or a thing has existed, typically measured in years.