When Reporting a Change in Accounting Principle, Required Disclosure(s)on the Income

question 65

Multiple Choice

When reporting a change in accounting principle, required disclosure(s) on the income statement include

• A)a per share amount for the cumulative effect of the change.
• B)the cumulative effect on prior years, net of tax.
• C)the cumulative effect be disclosed immediately after discontinued operations.
• D)silly question: a change in accounting principle is not reported on the income statement.

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Definitions:

Degrees of Freedom

The count of independent figures or measures that can be designated to a statistical distribution.

Distribution

The way in which something is shared out or spread across a range of values, areas, or people.

Null Hypothesis

A statistical hypothesis that assumes there is no significant difference or effect, serving as a default position until evidence suggests otherwise.

Independent Samples

Independent samples refer to sets of data collected from distinct, non-overlapping groups or populations, where the performance or measurement in one group does not influence the other.