A Change in an Accounting Estimate Is

question 226

Multiple Choice

A change in an accounting estimate is:

• A) Reflected in future financial statements and also requires modification of past statements.
• B) Not allowed under current accounting rules.
• C) Reflected in current and future years' financial statements, not in prior statements.
• D) Considered an error in the financial statements.
• E) Reflected in past financial statements.

---

Definitions:

Big Meal

A large serving of food, often consumed during special occasions or gatherings, that typically satisfies and exceeds normal hunger levels.

James-Lange Theory

A theory of emotion that proposes emotions result from the physiological responses to external events, suggesting that we feel emotion because of biological changes caused by stress.

Cannon-Bard Theory

A theory of emotion that proposes emotions and physiological responses such as sweating and trembling happen simultaneously.

Cognitive Appraisal

A psychological process where individuals evaluate and interpret their emotional response to a specific situation.