When There Has Been a Change in Accounting Principle

question 55

Multiple Choice

When there has been a change in accounting principle,

• A)the old principle should be used in reporting the results of operations for the current year.
• B)the cumulative effect of the change should be reported in the current year's retained earnings statement.
• C)the change should be reported retroactively.
• D)the new principle should be used in reporting the results of operations of the current year, but there is no change to prior years.