A company can change to a new method of accounting if management can justify that the new method results in
A)more meaningful financial information.
B)a higher net income.
C)a lower net income for tax purposes.
D)less likelihood of clerical errors.

Question

Quizplus · Accepted Answer

A company can change to a new method of accounting if management can justify that the new method results in more meaningful financial information, as this aligns with the principle of providing useful and relevant information to users of financial statements.

A Company Can Change to a New Method of Accounting