All of the Following Statements Regarding Changes in Accounting Principles

question 146

Multiple Choice

All of the following statements regarding changes in accounting principles are true except which of the following?

• A) Most changes in accounting principles are only reported in current periods when the principle change takes place.
• B) Changes in accounting principles are allowed when new principles are preferable to old ones.
• C) Most changes in accounting principles are retroactively reported.
• D) Consistency is one of the biggest concerns when a change in accounting principle is undertaken.

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Definitions:

Chemiosmosis

The movement of ions across a selectively permeable membrane, down their electrochemical gradient, which is used in cellular respiration and photosynthesis to generate ATP.

Oxidative Phosphorylation

A metabolic process that produces ATP by transferring electrons from NADH and FADH2 to oxygen via a series of electron carriers.

Glycolysis

Glycolysis is a metabolic pathway that breaks down glucose into pyruvate, generating small amounts of energy in the form of ATP.

Lactate Accumulation

The build-up of lactate in muscles during strenuous exercise when oxygen levels are low, often leading to fatigue.