A Retrospective Adjustment Requires a Change in the

question 49

Multiple Choice

A retrospective adjustment requires a change in the

• A)prior period financial statements to look like the current period financial statements
• B)current period income to reflect the cumulative effect of new method
• C)prior period financial statements to reflect how they would have been presented had the new method been used in prior periods
• D)current period accounts in the financial statements to what they would have been had the previous method been used in the current period

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Definitions:

Microfinance Loans

Small loans provided to individuals or groups in impoverished areas, intended to spur entrepreneurship and alleviate poverty.

Traditional Bank Loans

Traditional bank loans refer to fixed amounts of money borrowed from banks, with specified repayment terms, including interest, over a set period.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the borrower fails to repay.

Building Infrastructure

The process of constructing physical and organizational structures and facilities needed for the operation of a society or enterprise.