Under ASPE, a Change in Accounting Policy May Be Voluntary

question 93

True/False

Under ASPE, a change in accounting policy may be voluntary or compulsory.

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Definitions:

Market System

An economic system in which decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in free markets.

Inefficiency

A condition where resources are not used in the most economically beneficial way, leading to wasted resources or less-than-optimal outcomes.

Communist Central Planning

An economic system where all major production decisions are made by the government, with an aim of allocating resources according to a comprehensive plan.