The Cumulative Effect of Most Changes in Accounting Principle Is

question 103

Multiple Choice

The cumulative effect of most changes in accounting principle is reported:

• A)In the income statement between extraordinary items and net income.
• B)In the income statement after income and before income tax.
• C)In the income statement between discontinued operations and extraordinary items.
• D)In the balance sheet accounts affected.

---

Definitions:

Physical Harm

Physical Harm entails injury or damage to the body of a person caused by external forces or substances.

Vicarious Liability

A legal concept where one party is held responsible for the actions or negligence of another party, often seen in employer-employee relationships.

Tortious Conduct

Behavior that causes injury or harm to another, making the actor liable to civil legal action.

Reasonable Care

A legal standard that requires individuals to act with the caution and prudence that a reasonable person would use in similar circumstances, to prevent harm to others.