Which of the Following Statements Regarding Changing Inventory Methods Is

question 2

Multiple Choice

Which of the following statements regarding changing inventory methods is true?

• A)A change in inventory methods can be justified if the change is made to better match profits with revenue.
• B)Changing inventory methods affects consistency.
• C)One place that the reader of an annual report would be able to identify that a company changed inventory methods is the statement of stockholders' equity.
• D)Tax advantages are valid justification for changing inventory methods.

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Definitions:

Temporal Lobe

A region of the brain located on the sides of the cerebral hemisphere, involved in processing auditory information and encoding memory.

Gray Matter

The region of the brain and spinal cord that is rich in nerve cell bodies and is darker than the surrounding white matter due to its higher neuronal density.

Cerebrum

The largest part of the brain, responsible for voluntary activities, sensation, thought, reasoning, and memory.

Cortex

The outer layer of the cerebrum in the brain, involved in higher brain functions such as thought and action.