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:

Bioecological Model

A theoretical model that emphasizes the importance of biological systems and the ecological environment in the development of individuals, proposed by Urie Bronfenbrenner.

Microsystems

Microsystems are immediate environments or contexts in which an individual actively participates, such as family, school, or peer groups, influencing their development.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which outlines a hierarchy of human needs, from basic physiological needs to self-actualization.

Pyramid

A structure or concept that is shaped or organized in a way that resembles a geometric pyramid, often representing hierarchical layers.