A Change in Accounting Policy

question 86

Multiple Choice

A change in accounting policy

• A)is accounted for on a retrospective basis, without restatement.
• B)allows management to bias financial reporting.
• C)is accounted for on a prospective basis, with restatement.
• D)is accounted for in the same manner as an error correction.

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Definitions:

Continental Shelf

The extended perimeter of each continent, lying relatively shallow in the ocean, where the seabed is at a gentle slope before a steep drop off to the ocean floor.

Passive Margin

The transition between oceanic and continental lithosphere that is not an active plate boundary.

Oceanic Crust

The relatively thin part of the Earth's crust that underlies the ocean basins, composed mostly of basalt and gab-bro.

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