A change from one acceptable accounting method to another is reported
A) on the statement of retained earnings, as a correction to the beginning balance
B) on the income statement, below income from continuing operations
C) on the income statement, above income from continuing operations
D) through a retroactive restatement of prior-period earnings

Question

Quizplus · Accepted Answer

A change from one accounting method to another is reported through a retroactive restatement of prior-period earnings. This means that the financial statements for prior periods will be restated as if the new accounting method had always been used. The purpose of this is to provide users of the financial statements with a more accurate and consistent picture of the company's financial performance over time.

A Change from One Acceptable Accounting Method to Another Is