Which of the Following Is Characteristic of a Change in Accounting

question 23

Multiple Choice

Which of the following is characteristic of a change in accounting principle?

• A) Requires the reporting of pro forma amounts for prior periods
• B) Does not affect the financial statements of prior periods
• C) Never needs to be disclosed
• D) Should be reported by retrospectively adjusting the financial statements for all years reported,and reporting the cumulative effect of the change in income for all preceding years as an adjustment to the beginning balance of retained earnings for the earliest year reported

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Definitions:

Causal Relationships

Connections between two events or variables where one directly affects the outcome of the other.

Ethnography

A research method focused on the systematic study of people and cultures from an immersive perspective.

Cultural Questions

Inquiries that explore the values, practices, and norms of a society or group, often aimed at understanding diversity and promoting inclusivity.

Survey Research

A type of study where a group of people chosen to represent some larger population are asked questions about their attitudes, behavior, or thinking on a given topic.