A Change in Accounting Principle That Is Implemented Using the Retrospective

question 13

Multiple Choice

A change in accounting principle that is implemented using the retrospective approach includes:

• A) implementing the change in the current period only and not adjusting for the cumulative effects on prior periods.
• B) applying the new standard to the adoption period only and recording the cumulative adjustment for prior periods to the beginning balance of retained earnings.
• C) restating financial statements of all periods presented as if the new standard had been used in those periods.
• D) not accounting for the change in the current period or prior periods.

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Definitions:

Trait Information

Information or data that pertains to specific characteristics, attributes, or aspects of an individual's personality that are stable over time and across situations, often used in the context of assessing leadership potential.

Managers

Individuals responsible for controlling or overseeing part or all of an organization, typically involved in planning, decision-making, organizing, leading, and managing resources.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and jealousy.

Conscientiousness

A personality trait characterized by high levels of thoughtfulness, good impulse control, and goal-directed behaviors.