How Would a Company Report a Change in an Accounting

question 7

Multiple Choice

How would a company report a change in an accounting principle made on the last day of the third quarter?

• A)Retrospective application to all pre-change interim periods reported.
• B)No change is required.
• C)Apply to current and prospective interim periods only.
• D)Apply to prospective interim periods only.

---

Definitions:

Stated Value

An arbitrary value assigned to a company's share that does not have a par value, used for accounting purposes.

Market Value

The present cost at which a service or asset is available for buying or selling in the market.

Contributed Capital

Refers to the capital that is raised by issuing shares of stock, representing the total value of all stock sold to shareholders.

Unrealized Capital

Gains or losses on investments or assets that have not yet been sold or otherwise disposed of, reflecting a potential financial impact.