When an Accounting Change Is Reported Under the Retrospective Approach

question 80

Multiple Choice

When an accounting change is reported under the retrospective approach, prior years' financial statements are:

• A) Revised to reflect the use of the new principle.
• B) Reported as previously prepared.
• C) Left unchanged.
• D) Adjusted using prior period adjustment procedures.

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Definitions:

Declared

A term referring to variables or functions that are given a type and identifier in a program's code but not necessarily initialized.

Arithmetic

A branch of mathematics dealing with the study and manipulation of numbers through operations such as addition, subtraction, multiplication, and division.

Addresses

Addresses in computing are numerical representations that indicate specific locations in memory where data can be found or stored.

Pointers

A variable that stores the address of another variable.