Which of the Following Changes in Inventory Costing Usually Should

question 97

Multiple Choice

Which of the following changes in inventory costing usually should not be reported by revising the financial statements of prior periods?

• A) The weighted-average method to the LIFO method.
• B) The weighted-average method to the FIFO method.
• C) FIFO method to the weighted-average method.
• D) LIFO method to the weighted-average method.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to update account balances before the preparation of financial statements.

Unbilled Consulting Revenue

Unbilled consulting revenue refers to earnings from consulting services that have been delivered but not yet invoiced to the client.

Depreciation

The process of methodically dividing the expense of a physical asset over its estimated useful life.

Prepaid Services

Expenses paid in advance for services which will be received in the future.