A Voluntary Change in Accounting Policy Is Only Justifiable When

question 89

True/False

A voluntary change in accounting policy is only justifiable when it results information that is both more reliable and more relevant.

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Definitions:

Private Corporations

Businesses owned by non-governmental organizations or a relatively small number of shareholders or company members which do not offer or trade their company stock to the general public on the stock market.

Single Owner

Refers to a business structure where a single individual owns, manages, and is responsible for all aspects of the business, often known as sole proprietorship.

Legal Entity

An individual, company, or organization that has legal rights and obligations.

Satisfactory Income

The level of profit that meets or exceeds the expectations and needs of the business or its stakeholders.