In Cases Where It Is Not Practicable to Determine the Effect

question 75

Multiple Choice

In cases where it is not practicable to determine the effect of applying a change in accounting principle to a prior period, GAAP requires

• A) the change to be made prospectively
• B) the change be made retrospectively to the earliest date practicable
• C) that comparative financial statements for the present year with and without the change in accounting principle be shown
• D) a and b

---

Definitions:

Bits Per Second

A measurement of data transmission speed in digital communication systems, indicating the number of bits transmitted per second.

Token Passing

"A technique in which tokens are circulated among nodes in a communication network."

Media Access Method

A protocol that determines how multiple devices on a network share access to the physical media of that network.