Which of the Following Changes Is Not Usually Accounted for Retrospectively

question 151

Multiple Choice

Which of the following changes is not usually accounted for retrospectively?

• A) Change from expensing extraordinary repairs to capitalizing the expenditures.
• B) Change from FIFO to LIFO.
• C) Change in the composition of firms reporting on a consolidated basis.
• D) Change from LIFO to FIFO.

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Definitions:

Free Trade

An economic policy that allows for the unrestricted import and export of goods and services between countries without tariffs or quotas.

Production Costs

The expenses involved in manufacturing a product, including raw materials, labor, and overhead.

Tariff

A tax imposed by a government on imported or exported goods to protect domestic industries or to generate revenue.

Producer Surplus

The disparity between the amount producers are prepared to take for a product or service and the amount they actually get.