Asked by
McKenna Olson
on Oct 28, 2024
Verified
Which statement concerning accounting for accounting changes and errors is not true?
A) An error is accounted for retrospectively.
B) A change in accounting principle is accounted for prospectively.
C) A change in accounting principle may be accounted for retrospectively.
D) A change in accounting estimate is accounted for prospectively.
Accounting Principles
Fundamental guidelines or rules that govern the financial reporting and accounting practices of companies, ensuring accuracy, consistency, and fairness in financial statements.
Prospectively
Prospectively means looking forward or considering future events, often used in accounting in terms of adopting new policies for future transactions.
- Understand the differences between changes in accounting principles, estimates, and errors.
- Identify the optimal solution for updates in accounting principles, taking into account both retrospective and prospective uses.
- Distinguish between changes in accounting estimates and principles.
Verified Answer
AG
Learning Objectives
- Understand the differences between changes in accounting principles, estimates, and errors.
- Identify the optimal solution for updates in accounting principles, taking into account both retrospective and prospective uses.
- Distinguish between changes in accounting estimates and principles.
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