A Change in Accounting Principle Requires That the Cumulative Effect

question 38

Multiple Choice

A change in accounting principle requires that the cumulative effect of the change for prior periods be shown as an adjustment to

• A) beginning retained earnings for the earliest period presented.
• B) net income for the period in which the change occurred.
• C) comprehensive income for the earliest period presented.
• D) stockholders' equity for the period in which the change occurred.

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Definitions:

Assimilation

The process by which individuals or groups absorb and integrate the culture, values, and traditions of another society or group.

Flexible Plastic

A type of plastic material characterized by its ability to bend or flex without breaking, widely used in various applications for its versatility.

Stepping Motions

The movements or actions resembling steps, often observed in infants as a precursor to walking.

Accommodation

in psychology, the process of adapting or adjusting one's cognitive schemas and perceptions to incorporate new information or experiences.