When a Company Changes from One Acceptable Accounting Method to Another

question 89

Multiple Choice

When a company changes from one acceptable accounting method to another, the change is reported

• A) in the statement of retained earnings, as a correction to the beginning balance.
• B) in the income statement, below income from continuing operations.
• C) in the income statement, above income from continuing operations
• D) through a retroactive restatement of prior period earnings.

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Definitions:

Modified Leaf

A leaf that has evolved to perform functions other than photosynthesis, such as protection, climbing, storage, or reproduction.

Spines

Rigid, sharp structures on plants or animals, often serving as defense against herbivores or predators.

Tendrils

Slender, spirally coiling structures that enable climbing plants to attach and support themselves on objects.

Bud Scales

Protective structures that cover and protect the developing bud in some plants, especially during dormant periods.