When a company changes from one acceptable accounting method to another the cumulative effect of the change is disclosed:
A) in the statement of changes in equity.
B) as a note to the financial statements.
C) in the income statement.
D) in the statement of cash flows.

Question

Quizplus · Accepted Answer

When a company changes accounting methods the cumulative effect of the change is disclosed as a note to the financial statements.

When a Company Changes from One Acceptable Accounting Method to Another