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:

T Score

A type of standardized score that indicates how many standard deviations an element is from the mean.

Standard Deviation

A measure of the dispersion or spread in a set of data; it quantifies how much the individual data points differ from the mean value.

Mean

The average of a set of numbers, calculated by adding them together and dividing by the count of numbers.

Scores

Values or data points obtained from assessments, tests, or measurements, representing the performance or achievement of an individual or group.