Stockton Ltd

question 55

Multiple Choice

Stockton Ltd. changed its inventory system from FIFO to average cost. What type of accounting change does this represent?

• A) A change in accounting estimate for which the financial statements for the prior periods included for comparative purposes do not need to be restated.
• B) A change in accounting policy for which the financial statements for prior periods included for comparative purposes do not need to be restated.
• C) A change in accounting policy for which the financial statements for prior periods included for comparative purposes should be restated.
• D) A change in accounting estimate for which the financial statements for prior periods included for comparative purposes should be restated.

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Definitions:

Relative Influence

The impact or effect one factor has in relation to others within a specific context or system.

Dominance

A behavioral dynamic where an individual exerts control or influence over others in a social context, often seen in social hierarchies among animals and humans.

Poverty

A state where an individual or community lacks financial resources and essentials for a minimum standard of living.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or other negative outcomes.