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

question 119

Multiple Choice

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

• A)prospectively because it is usually 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.

---

Definitions:

Bona Fide Purchaser

A person who buys something in good faith without notice of any previous claim or lien against the property.

Good Title

A rightful or legitimate claim to the ownership of property or legal recognition of the ownership of property.

Security Interest

A legal claim or right on property as collateral to secure the performance of an obligation, usually the repayment of a debt.

Attached

Being joined or associated with something else, typically in the context of legal or official documents and properties.