Where There Are Changes in Accounting Policies That Create Initial

question 64

Multiple Choice

Where there are changes in accounting policies that create initial gains or losses on the first adoption of a new accounting rule:

• A) The gains and losses can be included in the period's income statement.
• B) The gains or losses are recorded as assets or liabilities, and are amortised over the specified period.
• C) The gains or losses can be adjusted against closing retained earnings.
• D) The gains or losses can be adjusted against opening retained earnings.
• E) The gains or losses can be adjusted against the 'Reserves' recorded in the Equity section of the balance sheet.

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Definitions:

Tight Junctions

Specialized connections between neighboring cells that create a barrier preventing the free passage of substances in the extracellular space between cells.

Endothelial Cells

Cells that line the interior surface of blood vessels and lymphatic vessels, playing a key role in controlling blood pressure and vascular tone.

Astrocyte Glial Cells

Star-shaped glial cells in the brain and spinal cord that perform various functions including providing support and nutrients to neurons, and regulating the composition of the extracellular space.

Endothelial Cells

Endothelial cells line the interior surface of blood vessels and lymphatic vessels, playing a critical role in vascular function, including blood clotting, inflammation control, and formation of new blood vessels.