The Brown Company Changed Its Method of Determining Inventories from LIFO

question 77

Multiple Choice

The Brown Company changed its method of determining inventories from LIFO to FIFO.This change represents a

• A)change in accounting estimate that should be treated prospectively
• B)change in accounting principle that should be treated prospectively
• C)change in accounting estimate for which the financial results of previous years are restated
• D)change in accounting principle for which the financial statements of prior periods included for comparative purposes are restated

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Definitions:

Dichromat

An individual with dichromacy, a form of color blindness where one has difficulty distinguishing certain colors due to the absence or malfunction of one of the three types of cone cells in the eyes.

Red-green

Often related to the type of color blindness where individuals have difficulty distinguishing between red and green hues.

Yellow-blue

A type of color vision deficiency where individuals have difficulty distinguishing between yellow and blue hues.

Sound Waves

Oscillations of air particles that travel through the air or another medium and can be heard when they reach a person's or animal's ear.