A Change in Accounting Policy Should

question 14

Multiple Choice

A change in accounting policy should

• A)be based on changes in the underlying economics of business transactions.
• B)not be based on management's best discretion.
• C)be based on improving the comparability of financial reporting.
• D)not be based on changes to accounting standards.

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Definitions:

Business Visitor

An individual who enters a premises for purposes related to business or commerce, often accorded certain legal protections.

Public Invitee

A person who is invited to enter or remain on property for a purpose directly or indirectly connected to business dealings with the proprietor.

Comparative Negligence

Comparative Negligence is a legal principle where the fault and damages are divided among the parties involved based on the degree of each party's negligence.

Charcoal Fire

The heat and flames produced by burning charcoal, commonly used for cooking and heating purposes.