Which of the Following Statements Is True with Respect to Financial

question 153

Multiple Choice

Which of the following statements is true with respect to financial statement reporting of a change in accounting principle?

• A)Comparability across periods is impaired
• B)Only a footnote is required to report the change
• C)Changes in both depreciation methods and inventory methods are reported retroactively.
• D)Management must show that the new accounting principle is preferable to the old method.