A Company Can Change from One Acceptable Accounting Principle to Another

question 129

Short Answer

A company can change from one acceptable accounting principle to another as long as the change __________________________________________ in its financial statements.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in its price.

Electricity Consumption

The sum of electrical energy utilized by all end-users over a designated time frame.

Government

The governing body of a nation, state, or community, responsible for making and enforcing laws, policies, and managing public resources.

Perfectly Price Elastic

A market scenario where the demand for a product is extremely sensitive to changes in price, meaning consumers will stop buying the product if the price increases even slightly.