Which of the following statements is true with respect to financial statement reporting of a change in accounting principle?
A) Comparability across periods is impaired
B) Only a footnote is required to report the change
C) Changes in both depreciation methods and inventory methods are reported retroactively.
D) Management must show that the new accounting principle is preferable to the old method.
Correct Answer:
Verified
Q23: Using borrowed money to increase the rate
Q29: Inventory turnover measures the number of times
Q29: A current ratio of 1.2 to 1
Q41: Declining profitability and liquidity ratios are indications
Q43: A solvency ratio measures the income or
Q45: Which of the following is the best
Q55: If a company has a discontinued operation
Q58: All of the following statements regarding changes
Q60: Which of the following would not be
Q145: The discontinued operations section of the income
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents