Which of the Following Requires Recognition in the Auditor's Opinion

question 89

Multiple Choice

Which of the following requires recognition in the auditor's opinion as to consistency?

• A)The correction of an error in the prior year's financial statements resulting from a mathematical mistake in capitalizing interest.
• B)A change in the estimate of provisions for warranty costs.
• C)The change from the cost method to the equity method of accounting for investments in common stock.
• D)A change in depreciation method which has no effect on current year's financial statements but is certain to affect future years.

Evaluate the redistributive effects of the Social Security retirement system, especially across different demographic groups.

Recognize the significance of efficient resource allocation in economics, including the principles of comparative advantage and voluntary exchange.

Understand the role of private property rights in resource conservation and economic efficiency.

Appreciate the importance of production possibilities curves in illustrating economic efficiency, growth potential, and opportunity costs.

---

Definitions:

Peek-a-boo

A game played with babies and young children, typically by covering the face with hands and then suddenly revealing it, prompting surprise and delight in the child.

Cognitive Development

The process of growth and change in intellectual capacities, involving perception, memory, judgment, and reasoning, across the lifespan.

Sensorimotor

A stage in early childhood development where learning occurs through sensory experiences and manipulating objects.

Piaget's Theory

A developmental theory by Jean Piaget that outlines how children's abilities to think and reason develop through four stages from infancy to adolescence.