All of the Following Are True Regarding Changes in Accounting

question 24

Multiple Choice

All of the following are true regarding changes in accounting principles EXCEPT:

• A) Accounting changes are allowed when new principles are preferred over previous ones.
• B) The company retrospectively restates all prior-period amounts as though the new accounting method had been in effect all along.
• C) The majority of the changes in accounting principles are reported in the current period when the change in principle occurred.
• D) If an accounting change impacts periods prior to the earliest one presented in the current income statement, an adjustment to retained earnings must be made.

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Definitions:

Delay Gratification

The ability to resist the temptation for an immediate reward and wait for a later reward, often considered a sign of emotional intelligence and self-control.

Belongingness Needs

are psychological needs for interpersonal connections, love, affection, and being part of a group, considered essential for human well-being.

Self-esteem Needs

Refers to the requirement for respect, self-worth, and positive self-regard, considered essential for psychological health and well-being.

Self-transcendence Needs

The need to experience a sense of meaning beyond the individual self, often involving spiritual or altruistic elements.