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Which of the following provides an illustrative example of changes in accounting principles? a. A change...

Which of the following provides an illustrative example of changes in accounting principles?

a. A change in earnings per share, due to an increase in the number of shares of common stock. b. A change in income, due to a change for post-retirement benefits. c. A change in earnings before taxes, because of a change in internal rates on debt. d. All of the above. e. None of the above.

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Answer #1

Change in accounting principle is the change in generally accepted one set of principle to generally accepted another set of principle.

All the example provided here are not the change of accounting principle but it is just change due to the operations of the business, and it is just reflecting the operational efficiency.

Change in income, change in Earning per share, these all are the example of operational efficiency not accounting principles.

So option (e) none of these statements are true.

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