All of the Following Situations Require a Retrospective Application of a Change

question 42

Multiple Choice

All of the following situations require a retrospective application of a change in a reporting entity except for:

• A)Presenting consolidated financials rather than individual statements for separate entities.
• B)Changing the specific subsidiaries that make up a consolidated entity.
• C)Presenting foreign subsidiaries in addition to domestic subsidiaries.
• D)Changing entities that are included in combined financial statements.

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Definitions:

Cause-And-Effect

refers to a relationship between events or variables, where one is the result of the other or others.

Computer Ownership

The state or fact of owning a computer, indicating possession and responsibility for the hardware.

Life Expectancy

The average period that an individual is expected to live, based on statistical averages of age, gender, and other factors.

Lurking Variable

A variable that is not directly measured or included in a study but can affect the relationship between the studied variables.