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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A systematic approach to problem-solving or decision-making that involves six distinct stages, typically starting with problem identification and concluding with solution evaluation.

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A systematic sequence of steps or stages that involves identifying a problem, generating alternatives, and selecting an option to resolve the issue.

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Decision-Making Process

A step-by-step approach to making choices among various options with the aim of reaching the best outcome.