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:

Enjoyment

A feeling of pleasure and satisfaction derived from engaging in an activity or experiencing something.

Birthday

The anniversary of the day on which a person was born, often celebrated as a special event.

Automatic System

Refers to the fast, involuntary, and unconscious way the brain processes information, often contrasted with deliberate thought.

Unconscious

Referring to the part of the mind that is not currently in focal awareness and contains thoughts, memories, and desires that are below the surface of conscious awareness.