Which of the Following Should NOT Be Reported Retroactively

question 24

Multiple Choice

Which of the following should NOT be reported retroactively?

• A) Use of an unacceptable accounting principle,then changing to an acceptable accounting principle
• B) Correction of an overstatement of ending inventory made two years ago
• C) Use of an unrealistic accounting estimate,then changing to a realistic estimate
• D) Change from a good faith but erroneous estimate to a new estimate

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Definitions:

Market Testing

The process of evaluating the viability of a new product or service through controlled experiments with target markets before a full-scale launch.

Business Analysis

The practice of identifying business needs and determining solutions to business problems through analysis and problem-solving strategies.

Environmental Scanning

The process of collecting, analyzing, and using information about trends, events, and relationships in an entity's external environment to assist in planning the entity's future course of action.

New-product Development Process

A series of steps that businesses follow to conceptualize, design, and bring a new product to the market, from initial ideation to commercialization.