If a Company Changes Its Inventory Valuation Method the Effect

question 92

True/False

If a company changes its inventory valuation method the effect of the change on net income should be disclosed in the financial statements.

---

Definitions:

Effect Dependence

A condition or situation where the outcomes or consequences depend significantly on specific actions, variables, or factors.

Compliance

The act of conforming to established guidelines, standards, or regulations.

Identification

involves the process by which an individual aligns their attitudes and behaviors with those of a group or role model.

Internalized

Refers to the process of adopting the norms, attitudes, or behaviors of others as one's own, often unconsciously.