Changing from Average Cost to FIFO Over Two Accounting Periods

question 73

Multiple Choice

Changing from Average Cost to FIFO over two accounting periods could be viewed as a violation of what accounting concept or principle?

• A) Conservatism
• B) Consistency
• C) Materiality
• D) Entity
• E) Cost Principle

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Definitions:

Rummaging

The act of searching unsystematically and untidily through a mass or receptacle to find something.

Statutory Grant

A sum of money legally given to an entity, typically from a government body, which is to be used for a specific purpose defined by statute.

Intellectual Property

Legal rights to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names, and images used in commerce.

Intellectual Work

Activities involving mental effort and creativity, such as research, analysis, and design, often producing intellectual property.