When an Accounting Change Is Reported Under the Retrospective Approach

question 28

Multiple Choice

When an accounting change is reported under the retrospective approach, account balances in the general ledger:

• A) Are not adjusted.
• B) Are closed out and then updated.
• C) Are adjusted net of the tax effect.
• D) Are adjusted to what they would have been had the new method been used in previous years.

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Definitions:

Language Growth

The process of acquiring or increasing skills in understanding and producing language.

Fetus's Sense

A fetus's sense refers to the sensory development and abilities of a fetus within the womb, including reactions to sound, light, and touch as the sensory organs develop.

Hearing Developed

The development of hearing refers to the process through which individuals gain the ability to perceive and understand sounds, typically occurring in early infancy.

Pregnancy Trimester

Refers to one of the three divisions of the duration of pregnancy, each lasting approximately three months, marking different developmental stages of the fetus.