All of the following statements regarding changes in accounting principles are true except which of the following?
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 not only reported in the current period but are typically applied retrospectively to ensure comparability across periods.

All of the Following Statements Regarding Changes in Accounting Principles