Discuss what kind of adjustment to the financial statements

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Reference no: EM132698801

Problem 1: Why is an entity permitted to change an accounting policy?

a. The change would allow the entity to present a more favorable profit picture.

b. The change would result in the financial statements providing more reliable and relevant information about financial position, financial performance and cash flows.

c. The change is made by the internal auditor.

d. The change is made by the CPA.

Problem 2: A change in accounting policy requires what kind of adjustment to the financial statements?

a. Current period adjustment

b. Prospective adjustment

c. Retrospective adjustment

d. Current and prospective adjustment

Reference no: EM132698801

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