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Chapter 20: Accounting Changes and Error Corrections

Horizontales
_____ approach reflects financial statement changes in only the year of the change and future years.
This abbreviation refers to an addition to or reduction in the beginning retained earnings balance due to correction of errors.
_____ _____ approach applies accounting change only to the adoption period with adjustment of retained earnings.
A Change in Accounting ____ involves a revision when new information comes to light (e.g., Depreciation, Bad Debts, etc.).
Verticales
Another word for accounting mistakes.
_____ approach revises previous years financial statements when presented for comparative purposes.
A Change in Accounting _____ occurs when you switch from one accounting method to another.
A Change in Reporting _____ occurs as a result of presenting consolidated financial statements in place of statements of individual companies.