With Respect to a Retrospectively Applied Change in Accounting Policy

question 14

True/False

With respect to a retrospectively applied change in accounting policy, the effects on prior years' income is treated as an adjustment to opening retained earnings.

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Definitions:

Equation

A mathematical statement asserting the equality of two expressions, typically involving variables, and solved to find the values of those variables.

Reciprocal

The multiplicative inverse of a number or expression; for any nonzero number x, its reciprocal is 1/x.

Number

A mathematical object used to count, measure, and label.

Extraneous Solutions

Solutions obtained in the process of solving an equation that do not satisfy the original equation.