When an Entity Changes Its Accounting from One Generally Accepted

question 18

Multiple Choice

When an entity changes its accounting from one generally accepted method to another generally accepted method:

• A) financial statements of all prior years are changed to maintain comparability.
• B) an explanatory note stating that the change was approved by the Financial Accounting Standards Board is required.
• C) the dollar effect of the change on both the balance sheet and income statement must be disclosed.
• D)changes like this are not permitted.

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Definitions:

Hostile Witnesses

Witnesses in a legal proceeding who show bias against the party calling them to testify, often leading to contrary or unhelpful testimony.

Peremptory Challenges

The right of attorneys during jury selection to reject a certain number of potential jurors without stating a reason.

Civil Trial

A judicial process to resolve disputes between parties over legal rights, typically not involving criminal charges.

Criminal Trial

A legal proceeding in which a person accused of a crime is tried in a court of law, facing charges brought by the state or government.