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:

Strategic Management Process

The comprehensive collection of ongoing activities and processes that organizations use to systematically coordinate and align resources and actions with mission, vision, and strategy throughout an organization.

Strategy Implementation

The process of executing plans and strategies to achieve organizational objectives, involving the allocation of resources and coordination of staff and departments.

Strategic Assessment

A comprehensive evaluation process of an organization’s strategic position, considering internal and external factors, to inform decision-making and future strategy.

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