The Cumulative Effect of Most Changes in Accounting Principle Is

question 35

Multiple Choice

The cumulative effect of most changes in accounting principle is reported:

• A)In the income statement between extraordinary items and net income.
• B)In the income statement after income before income tax.
• C)In the income statement between discontinued operations and extraordinary items.
• D)In the balance sheet accounts affected.

---

Definitions:

States of Affairs

The current conditions or situations regarding a particular matter or context.

Collectivist Nations

Countries where societal cohesion and the interdependence of individuals are considered core values, emphasizing the needs and goals of the group over those of the individual.

Tight Cultures

Societies or organizations where strict norms and behaviors are expected to be adhered to by members.

Clear Standards

Explicit, defined criteria or benchmarks that must be met or followed in various contexts such as quality, performance, or behavior.