When a Company Changes from One Acceptable Accounting Method to Another

question 89

Multiple Choice

When a company changes from one acceptable accounting method to another, the change is reported

• A) in the statement of retained earnings, as a correction to the beginning balance.
• B) in the income statement, below income from continuing operations.
• C) in the income statement, above income from continuing operations
• D) through a retroactive restatement of prior period earnings.

---

Definitions:

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology.

Personality Part

An aspect or component of an individual's personality, such as a trait or behavior pattern, that contributes to their overall character and psychological identity.

Reality Principle

A psychoanalytic concept suggesting that ego makes decisions based on the reality of the world, taking into account societal norms and laws.

Gratification Delay

The ability to resist the temptation for an immediate reward and wait for a later reward.