Which of the following is a change in policy?
A)A company changes from the gross method to the net method of recording cash discounts.
B)A change in the terms of a loan from repayment on demand to a fixed repayment date two years after the fiscal year-end.
C)A contingency for a lawsuit that was evaluated to be likely to lead to an outflow of resources was ultimately resolved against the reporting entity.
D)A temporary tax difference was treated as permanent tax difference.

Question

Quizplus · Accepted Answer

Changing from the gross method to the net method of recording cash discounts is a change in accounting policy, which involves a change in the principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements.

Which of the Following Is a Change in Policy