Which of the Following Would Not Be Accounted for Using

question 14

Multiple Choice

Which of the following would not be accounted for using the prospective approach?

• A) A change to LIFO from FIFO for inventory costing.
• B) A change in price indexes used under the LIFO method of inventory costing.
• C) A change in estimate.
• D) A change from the cash basis to accrual accounting.

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Definitions:

Signaling Mechanism

refers to actions or elements that convey information about a product or entity to influence decisions, such as quality indicators, brand reputation, or certifications.

Handsome Tip

A term used to describe a significantly large gratuity offered to service staff as a token of appreciation.

Proposal

A plan or suggestion, especially a formal or written one, put forward for consideration or discussion by others.

Expensive Ring

A ring that is priced at a high cost, typically due to factors such as materials (like diamonds or gold), brand, or craftsmanship.