Which of the Following Is True in Accounting for Changes

question 43

Multiple Choice

Which of the following is true in accounting for changes in estimates?

• A) Changes in estimates are considered as errors.
• B) A company recognizes a change in estimate by making a retrospective adjustment to the financial statements.
• C) A company accounts for changes in estimates only in the period of change, even though it affects the future periods.
• D) Changes in estimates are not carried back to adjust prior years.

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Definitions:

Effectiveness of Implementation

The degree to which strategies or plans are successfully executed to achieve desired outcomes.

Team Support

Assistance, encouragement, and resources provided to a group of individuals working together towards a common goal.

Subordinates

Individuals who are lower in rank or position in an organizational hierarchy and are subject to the authority of their superiors.

Vroom-Jago Leadership Model

A decision-making framework that helps leaders choose the best course of action based on the situation's specifics and the level of team involvement.