A Change in Accounting Estimate Is an Example of an Accounting

question 24

True/False

A change in accounting estimate is an example of an accounting change that affects comparability and requires an explanatory paragraph in the audit report.

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Definitions:

Portfolio B

Portfolio B is not a specific term but could refer to a theoretical or actual portfolio of investments selected as a part of an investment strategy or for analysis.

Variance

A measure of the distribution’s variability. It is the sum of the squared deviations about the expected value.

Standard Deviation

A statistical measure of the dispersion or variability of a set of numbers, indicating how much the individual numbers differ from the mean.

Deviation

The difference between a specific value and a reference point, often used in statistics to measure variability.