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:

What Ought to Happen

refers to normative expectations or prescriptions for behavior and outcomes in societal or specific contexts.

Unequal Distribution

The uneven allocation or spread of resources, wealth, or opportunities among members of a society or between societies.

Limited Resources

Economic or physical assets that are in finite supply, requiring allocation and management to meet various needs and desires.

Positivist Theories

A school of thought in sociology and criminology that emphasizes the application of empirical, scientific methods to the study of social issues and crime.