Listed Below Are Five Terms Followed by a List of Phrases

question 100

Multiple Choice

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term.
-Cumulative effect adjustment to income statement

• A)No journal entry needed, but disclosure is required.
• B)Handled prospectively.
• C)Adjustment to retained earnings of earliest year reported.
• D)Not used for changes in accounting principle.
• E)Information for change in reporting entity.

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Definitions:

Technical Bulletins

Official communications issued to provide instructions, information, or updates on technical aspects of products or services.

FASB

The Financial Accounting Standards Board, an organization that establishes financial accounting and reporting standards within the United States.

Primary Markets

Markets where securities are created and issued for the first time, allowing companies and governments to raise capital by selling stocks and bonds directly to investors.

Secondary Markets

Secondary Markets are markets where investors trade previously issued securities, such as stocks and bonds, among themselves, rather than purchasing them directly from the issuing company.