When a Change in Accounting Principle Is Reported, What Is

question 54

Multiple Choice

When a change in accounting principle is reported, what is sometimes sacrificed?

• A) Relevance.
• B) Consistency.
• C) Conservatism.
• D) Representational faithfulness.

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Definitions:

Inductive Argument

A form of reasoning in which the premises provide some evidence, but not full assurance, of the truth of the conclusion.

Analogy

Analyzing the similarities or differences between two items, usually to explain or make something clearer.

Identical

Exactly the same, without any difference.

Generalization

The process of extracting common characteristics from specific examples, leading to a broad conclusion or principle.