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Carman, Inc

Question 40

Multiple Choice

Carman, Inc. properly reported a change in accounting principle during 2017. This company must


A) have violated GAAP by not applying accounting principles consistently.
B) have convinced its auditors that the environment in which it operates has changed and another method is more appropriate.
C) be trying to cover up accounting errors.
D) have initially used the wrong method.

Correct Answer:

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