Jacob, Inc

question 13

Multiple Choice

Jacob, Inc., changed from the average cost to the FIFO cost flow assumption in 2012.the increase in the prior year`s income before taxes is €1,100,000.The tax rate is 35%.Jacob's 2012 journal entry to record the change in accounting policy will include.

• A)a debit to Retained Earnings for €1,100,000.
• B)a credit to Retained Earnings for €1,100,000.
• C)a debit to Inventory for €715,000.
• D)a credit to deferred Tax Liability for €385,000

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Definitions:

Revenue Opportunities

Potential scenarios or strategies that can lead to increased income or profits for a business or organization.

Public Utility Corporation

A company that provides essential public services, such as water, electricity, and natural gas, regulated by government entities.

Legislation

The process of making or enacting laws, or the body of laws that have been enacted by a legislative body.

Enforceable

Capable of being put into effect or action according to legal principles or regulations.