If a Company Changes the Method It Uses to Compute

question 12

Multiple Choice

If a company changes the method it uses to compute the allowance for uncollectible accounts receivable because more recent information has become available, how is this change in method is accounted for?

• A) The change is only reported in the current period in which the change is made.
• B) The change is reported in all future periods affected by the change.
• C) Previously issued financial statements are not adjusted by the change.
• D) All of these are correct ways to account for the change.