Changes in Accounting Estimates

question 61

Multiple Choice

Changes in accounting estimates:

• A)are reported for the current and future periods on the new basis.
• B)require prior financial statements to be restated.
• C)are not allowed under GAAP.
• D)are a prior period adjustment.

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Definitions:

Ppf

The Production Possibility Frontier, a curve depicting the maximum output possibilities for two goods, given available resources and technology.

Efficiently

The method of performing or functioning in the best possible manner with the least waste of time and effort.

Marginal Rate

Refers to the rate at which change occurs in one variable as a result of an incremental change in another variable, often used in the context of taxation or productivity.

Transformation

A broad term that can refer to a change or alteration in form, appearance, structure, or character, often used in various contexts including mathematics, technology, and social change.