The Effect of a Change in Accounting Principle That Is

question 33

Multiple Choice

The effect of a change in accounting principle that is inseparable from the effect of a change in accounting estimate should be reported

• A) by showing the pro forma effects of retroactive application.
• B) by restating the financial statements of all prior periods presented.
• C) in the period of change and future periods
• D) as a correction of an error.

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Definitions:

Identity

A concept referring to the various social categories, roles, and personal traits that define who a person is.

Symbolic Interactionism

Theory of how the self emerges from human interaction that involves people trading symbols (through language and gesture) that are usually consensual and represent abstract properties rather than concrete objects.

Non-verbal Cues

Forms of communication without words, such as gestures, facial expressions, body language, and postures, conveying messages or emotions.

Cognitive Constructs

Mental models or concepts that individuals use to organize and interpret their experiences.