When Changing an Accounting Policy Which of the Following Has

question 5

Multiple Choice

When changing an accounting policy which of the following has to be applied retrospectively?

• A)a voluntary change to improve the relevance of information presented
• B)a change due to the adoption of a new accounting standard
• C)a change due to the adoption of a new interpretation
• D)all of the above.

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Definitions:

Ending Inventory

The total value of all products, goods, and materials in stock at the end of an accounting period.

Interim Financial Statements

Financial reports covering a period of less than a full fiscal year, often quarterly.

Full Disclosure

A principle requiring that all material facts and information related to financial transactions be disclosed in financial statements.

Conservatism Principle

An accounting principle that advises reporting expenses and liabilities as soon as possible, but revenue only when it is ensured.