The cumulative effect of most changes in accounting principle is reported:
A)In the income statement between extraordinary items and net income.
B)In the income statement after income and before income tax.
C)In the income statement between discontinued operations and extraordinary items.
D)In the balance sheet accounts affected.

Question

Quizplus · Accepted Answer

The cumulative effect of a change in accounting principle is typically reported in the balance sheet accounts affected, as it involves adjusting the beginning balance of retained earnings for the earliest period presented.

The Cumulative Effect of Most Changes in Accounting Principle Is