Which of the Following Would Not Be Accounted for Using

question 14

Multiple Choice

Which of the following would not be accounted for using the prospective approach?

• A) A change to LIFO from FIFO for inventory costing.
• B) A change in price indexes used under the LIFO method of inventory costing.
• C) A change in estimate.
• D) A change from the cash basis to accrual accounting.

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Definitions:

Price Level

The average of current prices across the entire spectrum of goods and services in an economy, reflecting inflation or deflation.

Approaches

Methods or strategies employed in dealing with a problem or task.

Technology-enabled Products

Goods or services enhanced with technological features or capabilities, offering additional value or functionality.

Consumer Demand

The desire for particular goods or services that consumers are willing and able to purchase at a given price.