Choose the Correct Statement Regarding Accounting Changes

question 39

Multiple Choice

Choose the correct statement regarding accounting changes.

• A)Income statements numbers are required to be disclosed for most accounting principle changes.
• B)All changes in accounting principle require a cumulative effect to be recognized in the income statement.
• C)Changing from FIFO to Weighted Average is a retrospective accounting principle change.
• D)The amount of the correction for an error affecting previous earnings will be disclosed in current earnings.

---

Definitions:

Rewards

In psychology, positive reinforcements or incentives given to encourage desired behaviors.

Tokens

In behavior therapy, tangible items given as rewards for performing certain behaviors or achieving specific objectives, part of a token economy system to reinforce desired behavior.

Token Economies

A behavioral therapy technique where desirable behaviors are reinforced with tokens that can be exchanged for privileges or treats.

Staff Cooperation

The collaborative and coordinated effort of staff members working together towards common organizational goals, crucial for enhancing workplace productivity and morale.