When a Change in Accounting Principle Occurs, The

question 10

Multiple Choice

When a change in accounting principle occurs, the:

• A) cumulative effect of the change should be reported in the current year's retained earnings statement.
• B) change should be reported retroactively.
• C) old accounting principle should be used for the current year.
• D) new accounting principle should be used starting in the current year, with no change to the prior years.

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Definitions:

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for conserving energy and promoting a state of calm and rest in the body.

Glial Cells

Non-neuronal cells in the central nervous system that support, protect, and provide a supportive framework for neurons.

Brain's Cells

Cells in the brain, including neurons that transmit nerve impulses and glial cells that support and protect neurons.

Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.