If Practical, Firms Account for Voluntary Changes in Accounting Principles

question 107

True/False

If practical, firms account for voluntary changes in accounting principles, such as from a LIFO to a FIFO cost-flow assumption for inventories, by retrospectively restating net income of prior periods and adjusting the beginning balance in Retained Earnings of the current period.

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Definitions:

Observational Learning

is a form of learning that occurs through watching the behaviors of others and the consequences of those behaviors, also known as modeling or social learning.

Vicarious Learning

Learning that occurs by observing the actions of others and the outcomes of those actions, without the observer performing the actions.

Latent Learning

The subconscious retention of information without immediate or obvious reinforcement to be applied at a later time.

Insight

The capacity to gain an accurate and deep understanding of someone or something, often involving an "aha" moment of comprehension.