Generally Accepted Methods of Accounting for a Change in Accounting

question 70

Multiple Choice

Generally accepted methods of accounting for a change in accounting principle include

• A)restating prior years' financial statements presented for comparative purposes
• B)including the cumulative effect of the change in net income
• C)prospective changes
• D)making a prior period adjustment

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Definitions:

Social Institutions

Structures and mechanisms of social order and cooperation governing the behavior of a set of individuals within a given human community.

Ethical Culture

A corporate or organizational environment that promotes ethical behavior among its members through shared values, practices, and leadership.

Organizational Environment

External and internal factors that affect an organization's functioning, including social, economic, and technological influences.

Integrity Of Decisions

The quality of making choices that are upright, honest, and adhere to moral and ethical principles.