Companies Should Report the Cumulative Effect of an Accounting Change

question 143

Multiple Choice

Companies should report the cumulative effect of an accounting change in the income statement:

• A) In the quarter in which the change is made.
• B) In the annual financial statements only.
• C) In the first quarter of the fiscal year in which the change is made.
• D) Never.

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Definitions:

Informational Report

A document that primarily aims to convey data and information to its readers without an argument or opinion.

Directive

An official or authoritative instruction.

Primary Purpose

The main or most important reason or goal intended behind an action, task, or project.

Meeting Minutes

A written record of the main points discussed and actions agreed upon during a meeting.