Butler Products Decided to Change Inventory Methods on January 1,2016

question 43

Multiple Choice

Butler Products decided to change inventory methods on January 1,2016 to more effectively report its results of operations.In the past,management has measured its ending inventories by the average-cost method and they now believe that FIFO is a better representation of its financial position and profitability.Butler's tax rate is 35% for all years. Which one of the following journal entries correctly records the change in the accounting principle?

• A)No journal entry need for prospective application of the change in principle.
• B) Inventory 55,000
• C) Retained Earnings-Prior Period Adj. 35,750
• D) Inventory 50,000

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Definitions:

Grievance Interview

A formal meeting between an employer and an employee to address and resolve complaints or issues raised by the employee.

Informational Interview

An interview conducted to gather information about a job, career field, industry, or company from someone who has knowledge and experience in that area.

Performance Interview

A formal discussion between an employee and manager focused on evaluating the employee's job performance and setting future goals.

Interrogation Interview

A questioning process, often in a formal or official context, aimed at gathering information or confirming details, sometimes associated with law enforcement.