A Company Has Changed Its Method of Inventory Valuation from an Unacceptable

question 1

Multiple Choice

A company has changed its method of inventory valuation from an unacceptable one to one in conformity with generally accepted accounting principles. The auditor's report on the financial statements of the year of the change should include

• A) no reference to consistency.
• B) a reference to a prior period adjustment in the opinion paragraph.
• C) an explanatory paragraph that justifies the change and explains the impact of the change on reported net income.
• D) an explanatory paragraph explaining the change.

---

Definitions:

Self-Help Books

Publications intended to provide readers with information and advice on how to solve personal problems and improve their lives.

PID-5

The Personality Inventory for DSM-5, a self-report diagnostic tool used to assess personality disorders.

Big Five

A model that outlines five broad dimensions of personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Increasing Happiness

The pursuit of activities or practices aimed at enhancing one's sense of well-being and contentment.