All of the Following Would Be Reported Retrospectively by Restating

question 101

Multiple Choice

All of the following would be reported retrospectively by restating prior period's financial results except for a

• A) change from the completed-contract method to the percentage-of-completion method for long-term construction contracts
• B) correction of an error in previous periods
• C) change from LIFO to FIFO
• D) change from the straight-line depreciation method to the sum-of-the-years'-digits method

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Definitions:

Common Stock

Common Stock represents ownership shares in a corporation, giving shareholders voting rights and a share in the company's profits, often through dividends.

Stockholders' Equity

The residual interest or ownership rights remaining in a company's assets after deducting its liabilities.

Dividends

Financial distributions from a firm to its owners, commonly originating from the firm's profit.

Balance Sheet

A report detailing a firm's assets, liabilities, and equity of shareholders at a particular moment.