Which of the Following Statements Is True with Respect to Financial

question 51

Multiple Choice

Which of the following statements is true with respect to financial statement reporting a change in accounting principle?

• A)Comparability across periods is impaired
• B)Only a footnote is required to report the change
• C)Changes in both depreciation methods and inventory methods are reported retroactively.
• D)Management must show that the new accounting principle is preferable to the old method.

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Definitions:

Historical Foundation

The established basis or origins upon which current theories, beliefs, or practices are built, often influencing future developments.

Meals on Wheels

A service delivering prepared meals to the homes of individuals who are unable to purchase or prepare their own meals, primarily serving the elderly or disabled.

Disengagement Theory

A theory suggesting that it is natural and healthy for older adults to withdraw from social roles and responsibilities to focus on their inner lives.

Social Commitments

Obligations or engagements that a person has within their social relationships and community.