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:

Ingroup-Outgroup Bias

The tendency to favor members of one's own group (ingroup) over those from different groups (outgroup).

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by prejudice towards other groups.

Superordinate Goals

Objectives that require the cooperation of two or more parties with typically conflicting interests, thus promoting collaboration between them.

Dominate

To have control or exert power over; often implies overpowering or leading others in a particular context or situation.