When Disclosing the Impact of a Retrospective Adjustment for the Change

question 116

Multiple Choice

When disclosing the impact of a retrospective adjustment for the change from LIFO to FIFO in 2017, which of the following impacts is not expected to be reported in the comparative financial statements when two-year comparative statements are presented?

• A) impact on beginning inventory for 2016
• B) impact on 2016 net income
• C) impact on ending inventory for 2017
• D) impact on cost of goods sold for 2016

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Definitions:

Surveys

Research methods that involve collecting data from a pre-defined group of respondents to gain information and insights on various topics.

Adults

Individuals who have reached the age at which they are considered legally responsible for their actions, typically 18 years or older.

Big Butt

A colloquial term referring to a larger than average gluteal region.

Fat Gut

Informal term often referring to an excess of visceral fat in the abdominal area, which is associated with increased risks of metabolic syndrome and other health issues.