GAAP states that a change in accounting principle includes
A) a change from one GAAP to another GAAP
B) a change in accounting principle because the principle formerly used is no longer generally accepted
C) a change in the method of applying an accounting principle
D) All of these choices

Question

Quizplus · Accepted Answer

GAAP states that a change in accounting principle includes all of these choices. A change in accounting principle can occur when an entity changes from one GAAP to another GAAP or when an accounting principle that was previously generally accepted is no longer accepted. It can also occur when an entity changes its method of applying an accounting principle. Therefore, all of these choices are correct.

GAAP States That a Change in Accounting Principle Includes