When a Company Changes from LIFO to Another Inventory Method,the

question 91

Multiple Choice

When a company changes from LIFO to another inventory method,the change is reported

• A)prospectively because it is impractical to determine the effects of this change on prior years' net income.
• B)as an error correction.
• C)as a change in an accounting estimate.
• D)using the retrospective approach.

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Definitions:

Corporate Headquarters

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Physical Resource

Tangible assets used in the operation of a business, such as machinery, buildings, and equipment.