When a Firm Decides to Change an Accounting Principal,but Does

question 327

Multiple Choice

When a firm decides to change an accounting principal,but does not have sufficient information to use the retrospective approach,it may ________.

• A)estimate the numbers to do so
• B)declare the change to be impractical
• C)be forced to abandon the change
• D)use the prospective approach

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Definitions:

Process Reengineering

The radical redesign of business processes to achieve dramatic improvements in critical aspects like quality, output, costs, and service.

Small-batch Processing

A production method where goods are manufactured in small quantities, allowing for flexibility and customization.

Work Process

A series of actions or operations undertaken to achieve a particular outcome in a business or professional setting.

Workflow

The sequence of processes through which a piece of work passes from initiation to completion, often involving multiple steps and stakeholders.