Which of the Following Should Not Be Reported Retrospectively

question 26

Multiple Choice

Which of the following should not be reported retrospectively?

• A) Use of an unacceptable accounting principle, then changing to an acceptable accounting principle
• B) Correction of an overstatement of ending inventory two years ago
• C) Use of an unrealistic accounting estimate, then changing to a realistic estimate
• D) Change from a good faith but erroneous estimate to a new estimate

---

Definitions:

Impoverished Area

A region characterized by a severe lack of economic resources and access to basic needs, affecting the quality of life of its inhabitants.

Wealthy Environment

An environment abundant in resources, opportunities, and material wealth, often contributing positively to personal development.

Dopamine Hypothesis

Asserts that the brains of people with schizophrenia are oversensitive to the neurotransmitter dopamine.

Overactivity

Overactivity refers to a higher than normal level of physical or mental activity, which can sometimes indicate an underlying health issue or disorder.