Changing from LIFO to FIFO Over Two Accounting Periods Could

question 35

Multiple Choice

Changing from LIFO to FIFO over two accounting periods could be viewed as a violation of which accounting concept or principle?

• A)Conservatism
• B)Consistency
• C)Materiality
• D)Entity

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Definitions:

Permissive

Describes actions or conditions that are allowed or tolerated, especially in contexts where specific authorization or regulation may not exist.

Mandatory

Required or compulsory, indicating that certain actions, procedures, or measures must be followed or executed as per legal or organizational guidelines.

Illegal

Pertains to activities or actions that are prohibited by law.

Certification Elections

A process supervised by an official body in which employees vote to determine whether they wish to be represented by a particular labor union.