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1. Retrospective restatement of financial statements can result from: a. Changes in tax law. b. Errors...

1. Retrospective restatement of financial statements can result from:

a. Changes in tax law.

b. Errors in the current income statements.

c. Changes in accounting policies.

d. Changes in estimates.

e. Contributed capital.

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Answer #1

Changes in accounting policies are to be treated retrospectively which means new policies are to be applied to the prior period financial statements as if the new accounting policies had been used in those periods.

The answer is Changes in accounting policies.

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