When Disclosing the Impact of a Retrospective Adjustment for the Change

question 88

Multiple Choice

When disclosing the impact of a retrospective adjustment for the change from LIFO to FIFO in 2015, which of the following impacts is not expected to be reported in the comparative financial statements when two-year comparative statements are presented?

• A) impact on beginning inventory for 2014
• B) impact on 2014 net income
• C) impact on ending inventory for 2015
• D) impact on cost of goods sold for 2014

Understand the contribution of social psychology in addressing practical problems in society.

Understand the concept of task-technology intervention and its focus on the relationship between employees and the workplace.

Learn about Lewin's change model and identify its initial stage.

Comprehend the steps in the organizational development model.

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Definitions:

Effective Annual Rate

The interest rate that is adjusted for compounding over a given period. Essentially, it is the rate that accurately reflects the annual cost of borrowing or the annual return on investment.

Monthly Rate

Typically refers to an interest or finance charge applied on a monthly basis to loans, mortgages, or credits.

Discount Rate

The interest rate that the Federal Reserve charges commercial banks for loans, influencing the money supply and overall economic growth.

Perpetuity

A financial instrument or investment that pays a fixed amount of money indefinitely without a maturity date.