Disclosure Notes Related to a Change in Accounting Principle Under

question 66

Multiple Choice

Disclosure notes related to a change in accounting principle under the retrospective approach should include:

• A) The effect of the change on executive compensation.
• B) The auditor's approval of the change.
• C) The SEC's permission to change.
• D) Justification for the change.

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Definitions:

Public Goodwill

Positive public perception or favor towards a person, organization, or brand, often built over time through ethical behavior and community engagement.

Deductive Approach

The deductive approach is a logical process in research and reasoning that starts with a general statement or hypothesis and examines the possibilities to reach a specific, logical conclusion.

Sales Promotional Material

Documents or media utilized to increase awareness or sales of a product or service.

Counterproposal

An alternative proposal made in response to an original offer that does not meet one's satisfaction.