Which of the Following Accounting Changes Is Always Accounted for Prospectively

question 33

Multiple Choice

Which of the following accounting changes is always accounted for prospectively?

• A)change in accounting estimate
• B)change in reporting entity
• C)change in accounting principle
• D)correction of an error

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Definitions:

Standard-Sized Cupboards

Cabinets or storage units that conform to common dimensions used in housing and furniture design.

Exemption Clause

An Exemption Clause is a part of a contractual agreement that seeks to limit the liability of one of the parties in certain situations, effectively exempting them from fulfilling certain obligations or liabilities.

Commercial Transactions

Activities involving the purchasing, selling, trading, and distribution of goods and services among businesses or entities.

Exemption Clause

A clause in a contract that restricts or eliminates the responsibility of one party for specific violations or circumstances.