A Change in Accounting Principle That Is Implemented Using the Modified

question 143

True/False

A change in accounting principle that is implemented using the modified retrospective approach includes implementing the change in the current period only and not adjusting for the cumulative effects on prior periods.

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Definitions:

Accounts Receivable

Amounts owed to a company by customers for goods or services delivered or used but not yet paid for.

Current Liability

Financial obligations that a company is required to pay within one year or within its operating cycle, whichever is longer.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle if longer than a year.