The mandatory adoption of a new accounting principle as a result of a new FASB Statement requires a. Footnote disclosure only b. A cumulative effect adjustment c. Prospective adjustment d. Prior period adjustment

The mandatory adoption of a new accounting principle as a result of a new FASB Statement requires a. Footnote disclosure only b. A cumulative effect adjustment c. Prospective adjustment d. Prior period adjustment

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 18MC: Corrections of errors that occurred on a previous periods financial statements are called ________....

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Question

The mandatory adoption of a new accounting principle as a result of a new FASB Statement requires

a. Footnote disclosure only

b. A cumulative effect adjustment

c. Prospective adjustment

d. Prior period adjustment

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