Which One of the Following Statements Regarding Changing Inventory Methods

question 84

Multiple Choice

Which one of the following statements regarding changing inventory methods is true?

• A)A change in inventory methods can be justified if the change is made to better match profits with revenue.
• B)Changing inventory methods affects consistency.
• C)One place that the reader of an annual report would be able to identify that a company changed inventory methods is the statement of stockholders' equity.
• D)Tax advantages are valid justification for changing inventory methods.

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