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:

Price Level

The Price Level is a measure of the average prices of goods and services in an economy at a specific time.

Percentage Change

A mathematical calculation that represents the degree of change over time, expressed as a fraction of the original value.

Nominal GDP

The market value of all final goods and services produced within a country in a year, measured in current prices.

GDP Deflator

An appraisal method for the prices of all newly developed, domestically produced, consumable goods and services in an economy.