A Company Can Change to a New Method of Accounting

question 146

Multiple Choice

A company can change to a new method of accounting if management can justify that the new method results in

• A)more meaningful financial information.
• B)a higher net income.
• C)a lower net income for tax purposes.
• D)less likelihood of clerical errors.

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Definitions:

Alcohol Dependency

A medical condition characterized by a compulsive need to consume alcohol despite adverse effects on health and life.

Caffeine Intake

The consumption of caffeine, a stimulant found in coffee, tea, and other substances, often monitored for health and wellness.

Irritable

Easily annoyed or provoked to impatience or anger.

Develop Hobbies

The process of identifying and engaging in leisure activities for enjoyment, relaxation, or learning new skills.