Where a Business Makes a Change in an Accounting Policy,it

question 6

Multiple Choice

Where a business makes a change in an accounting policy,it must disclose:

• A) only the nature of the change and the reasons for it
• B) the nature of the change, the reasons for it and the financial effects of the change if it will affect the results of future periods
• C) the nature of the change, the reasons for it and the financial effects of the change if it has affected the current period's results or may affect the results of future periods
• D) the nature of the change, the reasons for it and the financial effects of the change if it has affected the current period's results

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Definitions:

Total Costs

The aggregate amount of all expenses associated with the production of a good or the operation of a business.

Larger Firms

Companies or businesses that employ a large number of workers and typically have a substantial volume of business operations and market influence.

Health Insurance

A form of insurance coverage that pays for an individual's or group's medical and surgical expenses or reimburses losses from sickness.

Noncontingent Basis

A situation or condition not dependent on certain events, conditions, or actions in order to occur or be valid.