When Making a Retrospective Adjustment, All of the Following Steps

question 113

Multiple Choice

When making a retrospective adjustment, all of the following steps are included except

• A) computing the cumulative effect of the new accounting principle as of the beginning of the first period presented.
• B) adjusting the current period net income for the cumulative effect of the change.
• C) adjusting the carrying value of impacted assets and liabilities.
• D) disclose the nature and reason for the change in accounting principle, including the new principle is preferable.

Recognize how changes in the prices of goods affect consumer's purchasing decisions.

Identify how income changes affect the consumer's ability to achieve higher levels of utility.

Understand the concept and implementation of Management by Objectives (MBO).

Identify different types of flexible work arrangements and their benefits.

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Definitions:

Tax Rate

The rate at which taxes are levied on an individual or a business entity.

Defense Expenditures

The amount of funding allocated by a nation for its military forces and activities, including salaries, equipment, research, and development.

Automatic Stabilizers

Economic policies and programs that automatically adjust to temper the fluctuations in an economy, such as unemployment insurance and progressive taxes.

Annual Deficit

The shortfall that occurs when a government's expenditures exceed its revenues within a one-year period.