A Company Can Change from One Acceptable Accounting Principle to Another

question 129

Short Answer

A company can change from one acceptable accounting principle to another as long as the change __________________________________________ in its financial statements.

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Definitions:

Test

A method or procedure used to assess the presence, quality, or performance of something.

Punitive Damages

Punitive damages are compensation awarded in a lawsuit as a punishment to the defendant for egregious wrongdoing and as a deterrent against future similar actions.

Civil Court

A court dealing with non-criminal cases, usually involving private disputes between individuals or organizations.

Compensation

Payment or reward given to someone in recognition of loss, suffering, or injury.