When Making a Voluntary Accounting Change, a Firm Must Explain

question 36

True/False

When making a voluntary accounting change, a firm must explain the justification for the change on the basis that it more accurately portrays its financial position and performance.

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Definitions:

Social Experiences

Interactions with others and the environment that contribute to the development of an individual's beliefs, attitudes, and behaviors.

Habituation-Dishabituation

The process by which an organism decreases or stops its response to a repetitive stimulus (habituation) and then increases its response again when the stimulus changes or is new (dishabituation).

Cognitive Abilities

The mental skills that involve the ability to reason, plan, solve problems, think abstractly, and learn.

Addition Problem

A mathematical operation where two or more quantities are combined to make a sum.