A Change in an Accounting Estimate Should Be Reported on the Financial

question 12

True/False

A change in an accounting estimate should be reported on the financial statements on a retrospective basis.

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Definitions:

Mortgage Bonds

These are fixed-income securities secured by a specified pool of mortgages, providing an income stream derived from mortgage interest payments.

Unsecured

Refers to loans or bonds that are not protected by collateral, making them riskier investments.

Issuing Firm

A company or entity that offers securities for sale to the public or private investors, often to raise capital.

Bond Market

A financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market, primarily in the form of bonds.