Which Type of Accounting Change Should Always Be Accounted for in Current

question 72

Multiple Choice

Which type of accounting change should always be accounted for in current and future periods?

• A) Change in accounting estimate
• B) Correction of an error
• C) Change in accounting principle
• D) Change in inventory costing methods

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Definitions:

Framing Error

A mistake made when the context or way in which information is presented leads to incorrect conclusions or decisions.

Positive Or Negative Context

The environment or circumstances that can influence the interpretation or outcome of an action or decision as favorable or unfavorable.

Representativeness Bias

A cognitive bias where an individual inaccurately assesses the likelihood of an event based on how closely it matches their preconceived stereotypes.

Group Is Aggressive

A situation where a collective behaves in a forceful or assertive manner, often to achieve a common goal.