When an Accounting Change Is Reported Under the Retrospective Approach

question 28

Multiple Choice

When an accounting change is reported under the retrospective approach, account balances in the general ledger:

• A) Are not adjusted.
• B) Are closed out and then updated.
• C) Are adjusted net of the tax effect.
• D) Are adjusted to what they would have been had the new method been used in previous years.

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Definitions:

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy from the most basic physical needs to higher psychological needs, culminating in self-actualization.

Full Potential

The highest or fullest level of performance or achievement one can realistically attain.

Self-Respect

The regard one holds for oneself as a worthwhile, competent individual, often seen as a crucial aspect of mental health.

Conditional Positive Regard

Acceptance and love from others that depend on one’s behavior meeting certain conditions or standards.