Which of the Following Statements Is Correct

question 6

Multiple Choice

Which of the following statements is correct?

• A)If it is impracticable to prospectively restate the figures for the previous years due to changes in an accounting policy,then they must be restated retrospectively.
• B)If it is impracticable to retrospectively restate the figures for the previous years due to correction of an error,then they must be restated prospectively.
• C)If it is impracticable to retrospectively restate the figures for the previous years due to changes in an accounting estimate,then they must be restated prospectively.
• D)If it is impracticable to retrospectively disclose a change in an accounting policy,then the disclosure must be restated prospectively.

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Definitions:

Early Withdrawal Penalty

A charge applied for taking money out of a financial account or investment before a set date or term has ended.

Spreadsheet

A digital document that uses rows and columns to organize data, calculations, and information, commonly used in accounting and financial analysis.

Multiplier

A factor used in economics to quantify the effect of investment spending on the aggregate income or output of an economy.

Full Retirement Age

Age at which a person receives full retirement Social Security benefits.