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:

Probability

A measure of the likelihood of a certain event or outcome, expressed as a number between 0 and 1.

Expected Utility Maximizer

An economic concept referring to individuals or entities that make choices under uncertainty to maximize their expected level of satisfaction or utility.

Utility Function

Depicts how different combinations of goods or services generate levels of happiness or utility for a person or household.

Probability

A measure of the likelihood of a specific event or outcome occurring, expressed as a number between 0 and 1.