A Change in Accounting Estimate Is an Example of an Accounting

question 73

True/False

A change in accounting estimate is an example of an accounting change that affects comparability and requires an explanatory/emphasis-of-matter paragraph in the audit report.

---

Definitions:

Expected Inflation

The rate at which prices for goods and services are anticipated to rise over a future period, as forecasted by economists or financial markets.

Relative Purchasing Power Parity

A theory in economics that suggests that changes in the exchange rates between currencies are in direct proportion to changes in the countries' price levels.

Expected Inflation

The predicted average rate at which prices of goods and services rise over time, eroding purchasing power.

Relative Purchasing Power Parity

An economic theory that suggests exchange rates between currencies adjust to negate changes in purchasing power.