Which of the Following Is Characteristic of a Change in an Accounting

question 36

Multiple Choice

Which of the following is characteristic of a change in an accounting estimate?

• A) It usually need not be disclosed
• B) It does not affect the financial statements of prior periods
• C) It should be reported through the restatement of the financial statements
• D) It makes necessary the reporting of pro forma amounts for prior periods

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Definitions:

Fulfilment

The achievement of something desired, promised, or predicted, leading to satisfaction or happiness.

Self-Fulfilling Prophecy

A prediction or expectation about a situation or behavior that causes the prediction to be fulfilled by influencing the situation or people's behavior.

Studied Hard

A phrase indicating the process of dedicating significant effort and time to learning or mastering a subject matter.

Poorly

In an unsatisfactory, inadequate, or unsuccessful manner, often describing performance or condition.