Stone Company Changed Its Method of Pricing Inventories from FIFO

question 91

Multiple Choice

Stone Company changed its method of pricing inventories from FIFO to LIFO. What type of accounting change does this represent?

• A) A change in accounting estimate for which the financial statements for prior periods included for comparative purposes should be presented as previously reported.
• B) A change in accounting principle for which the financial statements for prior periods included for comparative purposes should be presented as previously reported.
• C) A change in accounting estimate for which the financial statements for prior periods included for comparative purposes should be restated.
• D) A change in accounting principle for which the financial statements for prior periods included for comparative purposes should be restated.

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Definitions:

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A medical condition resulting from the lack of sufficient vitamin B12, affecting the body’s ability to produce healthy red blood cells, leading to anemia and neurological issues.

Absorb

The process by which one substance takes in or soaks up another substance, often used in biological or chemical contexts.

Erythroblastosis Fetalis

A potentially fatal condition in newborns due to incompatibility between maternal and fetal blood types.

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A medication used to prevent Rh incompatibility issues in pregnancies by stopping the mother's immune system from attacking the baby's red blood cells.