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Explain Why a Change in Accounting Policy Requires the Adjustment

question 75

Essay

Explain why a change in accounting policy requires the adjustment of both prior and future periods, whereas a change in estimate requires only adjustment of current and future periods.


Definitions:

Liking

A feeling of fondness or affection towards someone or something.

Infatuation

An intense but short-lived passion or admiration for someone or something.

Passion

Strong romantic and sexual feelings.

Preoccupation

The state of being engrossed in thought or excessively concerned with something.

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