A change in accounting principle from one that is not generally accepted to one that is generally accepted should be treated as
A) an error and corrected by prior period adjustment.
B) a change in accounting principle and the cumulative effect included in net income.
C) a change in accounting principle and prior period financial statements are restated.
D) a change in accounting principle and adjustments made prospectively.
A
You might also like to view...
Which of the following is an example of how managers use product cost reports to control costs?
A) setting product prices high enough for the company to be profitable B) providing cost of goods sold for the income statement C) determining if newer, more efficient equipment should be acquired D) promoting products that are most profitable
An account which is increased by a debit is a
A. revenue account B. retained earnings account C. liability account D. dividends account