When an Accounting Change Is Recorded and Reported Using the Retrospective

question 122

True/False

When an accounting change is recorded and reported using the retrospective approach, the cumulative effect on Retained Earnings is recorded in that account.

---

Definitions:

Accrued Expenses

All unpaid financial obligations incurred by an organization.

Taxes Payable

Liabilities owed to the government or other authorities, usually within one year, arising from taxable activities or transactions.