Which Statement Is Correct

question 150

Multiple Choice

Which statement is correct?

• A)Accounting policy changes should reflect changes in economic circumstances.
• B)Accounting errors are corrected prospectively in the financial statements.
• C)Changes in accounting estimates are corrected retrospectively in the statements.
• D)Correction of accounting errors proves that management bias exists in reporting.

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Definitions:

Standard Error

A measure that quantifies the variation or dispersion of sample means relative to the true population mean.

Variance

A measure of the spread or dispersion within a set of data points, calculated as the average of the squared differences from the mean.

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Sample Size

The number of observations or data points collected in a sample from a larger population.