The cumulative effect of accounting changes is disclosed in the statement of shareholders' equity (or retained earnings).

Name: The cumulative effect of accounting changes is disclosed in the statement of shareholders' equity (or retained earnings).
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Question

Quizplus · Accepted Answer

This is because the statement of shareholders' equity (or retained earnings) shows the changes in the equity section of the balance sheet, including the effects of accounting changes on retained earnings.

The Cumulative Effect of Accounting Changes Is Disclosed in the Statement