Which of the Following Is NOT Considered to Be a Change

question 27

Multiple Choice

Which of the following is NOT considered to be a change in accounting policy?

• A) changing from weighted average to FIFO for valuing inventories
• B) initial adoption of a new accounting standard
• C) reclassifying items on the financial statements of prior periods to make the statements more comparable
• D) changing from the cost basis to the fair value model for measuring investments

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Definitions:

Preferred Stockholders

Investors who own preferred shares in a company, which typically gives them priority over common stockholders in terms of dividends and assets in the event of liquidation.

Corporate Creditors

Entities or individuals that have lent money or extended credit to a corporation and have a right to be repaid.

Charter

A formal document issued by a sovereign or state outlining the rights, privileges, or authority granted to an individual, corporation, or city.

Authorized

Authorized refers to having official permission or approval for actions, operations, or status within legal or organizational frameworks.