Which of the following is true of accounting for changes in estimates?

a. a company recognizes a change in estimate by making a retrospective adjustment to the financial statements

b. changes in estimates are not carried back to adjust prior years

c. a company accounts for changes in estimates only in the period of change, even though it affects the future periods

d. changes in estimates are considered as errors or extraordinary items

An important source of public scrutiny is "watchdogs." these are: the efforts of a firm's competitors, including how often the competitors attack the firm's strategies. taxpayer-supported government agencies that limit a firm's ability to compete in foreign markets. companies designated by the government to only produce products that support the government defense program. socially conscious groups that make it their mission to measure the social responsibility levels of businesses, and provide consumers with their opinions about the level of corporate responsibility of various companies.