The Effect of a Revision of an Accounting Estimate Must

question 59

Multiple Choice

The effect of a revision of an accounting estimate must be recognised in profit and loss in which reporting periods?

• A) in the present, prior (by adjusting retained earnings) and future periods affected
• B) in the present and future periods affected
• C) in the present and prior reporting periods (by adjusting retained earnings)
• D) not recognised in any period

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Definitions:

RFP

Stands for Request for Proposal, a document that solicits proposals, often made through a bidding process, by an agency or company interested in procurement of a commodity, service, or valuable asset.

Risks

The potential for loss or damage when a threat exploits a vulnerability.

Recommendations

Suggestions or proposals as to the best course of action, especially one put forward by someone with expertise or authority.

External

Pertaining to factors, influences, or conditions that exist or originate outside of an organization or system.