Which of the Following Is NOT Correct Regarding a Change

question 1

Multiple Choice

Which of the following is NOT correct regarding a change in reporting entity?

• A) Financial statements of the year in which the change in reporting entity is made should disclose the nature of the change and the reason for the change.
• B) The effect of the change on income before extraordinary items,net income,and earnings per share amounts should be reported for all periods presented.
• C) Financial statements presented for all prior periods must be restated.
• D) The effect of the change on income before extraordinary items,net income,and earnings per share amounts should be reported for all periods presented and must be repeated in all periods subsequent to the period of the change.

---

Definitions:

Identity Cohesion

The feeling of unity, continuity, and consistency in a person's identity over time despite various external changes.

Role Confusion

refers to Erikson's theory on the struggle to find one's own identity, where the individual may be unsure about themselves or their future.

Moratorium

A period of delay or suspension of activity; in psychology, it often refers to a stage of adolescent identity exploration.

Consistency

The quality of being uniform, reliable, or stable over time, often applied to a person's behavior or attitudes.