A Change in Accounting Principle Occurs When the Principle Used

question 98

True/False

A change in accounting principle occurs when the principle used by a company in the current year is different from the one used by its competitors in the current year.

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Definitions:

Arbitrage

The practice of buying and selling equivalent goods in different markets to take advantage of price differences for profit.

Low-value Group

A classification for items or entities considered to have lesser worth or importance, typically due to lower quality or usefulness.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on various criteria.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the amount they actually receive.