Prior Period Adjustments Should Be Made for a Change in Accounting

question 79

True/False

Prior period adjustments should be made for a change in accounting policy by the company.

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Definitions:

Common Law

A legal system based on customs, court decisions, and precedent rather than statutory laws.

Employment Standards Legislation

Laws that define the rights and responsibilities of employees and employers, including minimum wage, hours of work, and safety standards.

Workers' Compensation Act

Legislation designed to provide compensation to employees who are injured or disabled in the course of their employment.

Reasonable Notice

Length of notice to be given to an employee to terminate an employment contract of indefinite term; determined with reference to length of service and the nature of the employee’s position, among other factors.