A Change in Accounting Policy Should Be Made Only

question 10

Multiple Choice

A change in accounting policy should be made only:

• A) If required by tax law.
• B) If the change will result in a more appropriate presentation of events or transactions in the financial statements of the entity.
• C) If it allows the entity to improve its income.
• D) All of these

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Definitions:

Mixed Economy

An economy in which production and distribution is done partly by the private sector and partly by the government.

Pure Communism

An idealized form of communism in which there is no need for a state and goods are distributed according to people's needs.

China

The world's most populous country, with a complex economy that is one of the largest globally and a rich cultural history.

Soviet Union

A former federal socialist state in Eastern Europe and Northern Asia, existing from 1922 until its dissolution in 1991, comprising multiple Soviet republics.