What significant change occurred in accounting practices since the 1930s?

The significant change that occurred in accounting practices since the 1930s is the standardization of financial reporting methods. This development was crucial in establishing a consistent framework for how companies present their financial information. The movement towards standardized reporting allows for greater comparability and transparency in financial statements, making it easier for stakeholders, including investors and regulators, to analyze a company's performance and make informed decisions.

Standardization has been supported by various regulatory bodies, most notably the Financial Accounting Standards Board (FASB) in the United States and the International Accounting Standards Board (IASB) globally. These organizations have worked to develop generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS) that provide clear guidelines for financial reporting. This shift has played a vital role in enhancing the credibility and reliability of financial information over the decades.

In contrast, the other options do not reflect the broader trends in accounting practices accurately. The focus on historical cost accounting alone would overlook the dynamic nature of accounting frameworks that have adapted to include fair value measurements. A shift towards cash-based accounting does not capture the complexity of modern financial reporting, which often incorporates accrual accounting principles. Lastly, the elimination of risk assessment practices would be counterproductive; in fact, modern accounting practices