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.

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Definitions:

Acculturation

The process of social influence by which a person partially or fully acquires a new cultural outlook, either by having contact with or living in a culture different from his or her culture of origin.

Socioeconomic Status

Socioeconomic status is a measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.

Complexity

The state of having multiple interconnected parts or elements, leading to a system or problem that is difficult to understand, predict, or navigate.

Tightness

In psychology, often refers to the strictness of social norms and the level of sanctioning within cultures or groups.