Which of the Following Changes Would Be Disclosed as a Change

question 57

Multiple Choice

Which of the following changes would be disclosed as a change in accounting principle but reported by applying the new method retrospectively as restatements of prior periods?

• A)Change from completed-contract accounting to percentage of completion
• B)Change from the first-in, first-out method to the last-in, first-out method of inventory pricing
• C)Change in the composition of elements included in inventory
• D)Change from the straight-line method to an accelerated method of depreciation

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Definitions:

Legislative History

This term refers to the documents that are produced by the legislature during the enactment of a law, which can include debates, committee reports, and amendments.

Plain Meaning Interpretation

A method of legal interpretation where courts determine meaning based on the ordinary, literal, or straightforward sense of the language.

Administrative Regulations

Rules and directives issued by government agencies that have the force of law and guide the implementation of statutes.

O'Connor v. Oakhurst Dairy

A legal case concerning the interpretation of a law's punctuation, namely the lack of an Oxford comma, affecting the entitlement of overtime pay to drivers.