Which of the following is accounted for as a change in accounting principle?
A) A change in the estimated useful life of plant assets.
B) A change from the cash basis of accounting to the accrual basis of accounting.
C) A change from expensing immaterial expenditures to deferring and amortizing them as they become material.
D) A change in inventory valuation from average cost to FIFO.

Question

Quizplus · Accepted Answer

A change in inventory valuation from average cost to FIFO is considered a change in accounting principle, as it involves a change in the method used to account for inventory.

Which of the Following Is Accounted for as a Change