All of the following statements regarding changes in accounting principles are true except:
A)Most changes in accounting principles are only reported in current periods when the principle change takes place.
B)Changes in accounting principles are allowed when new principles are preferable to old ones.
C)Most changes in accounting principles are retroactively reported.
D)Consistency is one of the biggest concerns when a change in accounting principle is undertaken.

Question

Quizplus · Accepted Answer

Most changes in accounting principles are retroactively reported, meaning they are applied to prior periods and adjustments are made to financial statements for those periods. Only in certain circumstances, such as a change due to a newly issued accounting standard, would a change be reported only in the current period.

All of the Following Statements Regarding Changes in Accounting Principles