A Company Can Change to a New Accounting Principle If

question 91

Multiple Choice

A company can change to a new accounting principle if management can justify that the new principle results in

• A) more relevant and faithful representation of the financial presentation in the statements.
• B) a higher profit.
• C) a lower profit for tax purposes.
• D) less likelihood of clerical errors.

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Definitions:

Ultrasonic Sensors

Devices that measure the distance to an object through the emission of ultrasonic sound waves and the detection of their reflections, used in various applications like level sensing and obstacle detection.

High-frequency Light

Light that emits or operates at high frequencies, often used in specialized applications such as UV curing or fast optical communication.

Encoders

Devices that convert motion or position into an electrical signal, often used for feedback in control systems.

Precisely Determined

Accurately established or calculated with precision, leaving no ambiguity about the result or outcome.