A Change in Accounting Principle That Is Implemented Using the Modified

question 112

Multiple Choice

A change in accounting principle that is implemented using the modified 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 current period's 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:

Internal Fit

The alignment between an organization's strategy, processes, and structures to ensure optimal performance and efficiency.

Differentiation Strategy

A business approach where a company offers unique products or services to stand out from its competitors.

Strategic Planning

The process of defining a strategy or direction, and making decisions on allocating resources to pursue this strategy.

Workforce Planning

The process of analyzing, forecasting, and planning workforce supply and demand, assessing gaps, and determining targeted talent management interventions.