When Disclosing the Impact of a Retrospective Adjustment for the Change

question 21

Multiple Choice

When disclosing the impact of a retrospective adjustment for the change from LIFO to FIFO in 2011, which of the following impacts is not expected to be reported in the comparative financial statements when two-year comparative statements are presented?

• A)impact on beginning inventory for 2010
• B)impact on 2010 net income
• C)impact on ending inventory for 2011
• D)impact on cost of goods sold for 2010

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Definitions:

Lewis Acid

A compound or ionic species that can accept an electron pair from a donor molecule, often functioning as a catalyst in chemical reactions.

Nucleophile

A chemical species that donates an electron pair to form a chemical bond in relation to a reaction.

Lewis Base

A substance that can donate a pair of electrons to form a covalent bond, according to Lewis acid-base theory.

Electrophile

A reactive species that seeks out electrons and is attracted to electron-rich sites, often participating in chemical reactions by accepting an electron pair.