Change in Accounting Estimate Requires That a "Catch-Up Adjustment" Be

question 16

True/False

Change in accounting estimate requires that a "catch-up adjustment" be recorded and reported in the year of the change.

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Definitions:

Realistic Appraisal

The process of objectively evaluating situations, possibilities, and potential outcomes based on factual and rational analysis.

Prevailing Inclinations

Dominant tendencies or preferences that are widespread or common in a particular time or place.

Prejudice

An unjustifiable and usually negative attitude toward a group and its members. Prejudice generally involves negative emotions, stereotyped beliefs, and a predisposition to discriminatory action.

Just-World Phenomenon

The tendency for people to believe the world is just and that people therefore get what they deserve and deserve what they get.