Which of the Following Statements Concerning a Change in Accounting

question 41

Multiple Choice

Which of the following statements concerning a change in accounting policy is true?

• A) If a change in accounting policy is adopted retroactively, the company needs to restate closing retained earnings.
• B) If a change in accounting policy is adopted retroactively, the company needs to restate opening retained earnings.
• C) If a change in accounting policy is adopted prospectively, the company needs to restate closing retained earnings.
• D) If a change in accounting policy is adopted prospectively, the company needs to restate opening retained earnings.

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Definitions:

Relearn

The process of learning material or skills again, often after forgetting or loss of proficiency.

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The occurrence when an individual's recollection of specific events becomes distorted by information encountered after the event.

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The quality of being trusted and believed in, often based on a reputation for integrity and truthfulness.

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The process through which children remember and recount past experiences or events.