Prior Corp

question 95

Multiple Choice

Prior Corp.plans to change its method of accounting for supplies.Both the old and new methods are acceptable.Which of the following statements is correct regarding the change?

• A)The taxpayer will need to amend prior returns to reflect the new method.
• B)The taxpayer will report the full amount of change in the current tax return.
• C)The taxpayer will report the net adjustment over four years.
• D)The taxpayer will report the net adjustment and pay the tax when it files the Form 3115.

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Definitions:

Dependent Variable

In an experiment, the variable that is measured or tested and is expected to change as a result of manipulations to the independent variable.

Interrelated Ideas

Concepts or thoughts that are connected in such a way that they influence or impact each other.

Observations

The action or process of closely monitoring or noting phenomena or data for the purpose of scientific inquiry or gathering information.

Theory

A set of concepts designed to elucidate a particular subject, founded on overarching principles unrelated to the subject matter itself.