A Company Can Change from One Acceptable Accounting Principle to Another

question 31

True/False

A company can change from one acceptable accounting principle to another as long as the change improves the usefulness of information in its financial statements or it is required by IFRS.

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Definitions:

Market Value

Market value is the current price at which an asset or service can be bought or sold.

Inventory Value

The total cost or market value of all the goods held by a company, intended for sale in the ordinary course of business.

Cost

The monetary value required to produce, acquire, or maintain a product or service.

Retail Values

The price at which goods and services are sold to consumers in a retail setting, often higher than wholesale prices.