Q 18

A company changed its method of inventory pricing from last-in,first-out to first-in,first-out during the current year.Generally accepting accounting principles require that this change in accounting method be reported by: A)Accounting for the effects of the change in the current and future periods. B)Showing the cumulative effect of the change in the current year's financial statements and pro forma effects on prior year's financial statements in an appropriate footnote C)Disclosing the reason for the change in the "significant accounting policies" footnote for the current year but not restating prior year financial statements D)Applying retroactively the new method in restatements of prior years and appropriate footnote disclosures

Multiple Choice