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:

Equal Employment Opportunity Legislation

Laws designed to prevent discrimination in the workplace based on race, color, religion, sex, national origin, age, disability, or genetic information.

Employee Retirement Income Security Act

A national regulation establishing basic requirements for the majority of privately initiated pension and health schemes in the private sector, aimed at safeguarding participants in these programs.

Drug-Free Workplace Act

A U.S. federal law that requires some employers to maintain a work environment free from the illegal use of drugs.

Fair Labor Standards Act

U.S. legislation that establishes minimum wage, overtime pay, recordkeeping, and child labor standards.