A company can change to a new accounting principle if management can justify that the change will result in
A) less likelihood of clerical errors.
B) higher net income.
C) lower net income for tax purposes.
D) more relevant information for decision-making.

Question

Quizplus · Accepted Answer

A company can change to a new accounting principle if it results in more relevant information for decision-making, as this aligns with the goal of providing useful financial information to users.

A Company Can Change to a New Accounting Principle If