If a Company Starts Using a New Accounting Method Because

question 56

True/False

If a company starts using a new accounting method because of a change in circumstances; this is considered a change in accounting policy under IFRS.

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Definitions:

Actual Price Level

The current average of all prices of goods and services in an economy, reflecting the purchasing power of money.

Quantity of Output

The total amount of a product or service that is produced by a company or an economy.

Short Run

A period in economics during which at least one factor of production is fixed, typically understood as a timeframe insufficient for adjusting all inputs.

Aggregate Demand

Summation of demand for all goods and services in an economy, factored at a certain price level and within a definite time span.