Which of the Following Would Be Considered a Change That

question 60

Multiple Choice

Which of the following would be considered a change that does not affect comparability?

• A)Change in accounting estimate.
• B)Change in accounting principle.
• C)Correction of principle material misstatement in previously issued financial statements.
• D)None of these are considered changes that do not affect comparability.

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Definitions:

Preferred Stockholders

Investors who own preferred shares in a company, giving them priority over common stockholders in dividend payments and assets during liquidation.

Creditors

Individuals or entities that a company owes money to because they have provided goods or services on credit.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Corporation's Assets

The resources owned by a corporation that have economic value and can be used to meet its financial obligations.