A Change in an Accounting Estimate Is

question 107

Multiple Choice

A change in an accounting estimate is:

• A) Reflected in past financial statements.
• B) Reflected in future financial statements and also requires modification of past statements.
• C) Reflected in current and future years' financial statements, not in prior statements.
• D) Not allowed under current accounting rules.
• E) Considered an error in the financial statements.

---

Definitions:

Values

Fundamental beliefs that guide behaviors and decision-making processes.

Organizational Culture

The shared values, beliefs, norms, and practices that shape the social and psychological environment of a business or organization.

Dominant Values

The most powerful or influential values held by a society, organization, or group, shaping behaviors and norms.

National Culture

The set of shared values, traditions, beliefs, laws, and practices that characterizes a country or nation.