The Bronson Company Changed Its Method of Determining Inventories from LIFO

question 20

Multiple Choice

The Bronson Company changed its method of determining inventories from LIFO to FIFO. This change represents a

• A) change in accounting estimate that should be treated prospectively.
• B) change in accounting principle that should be treated prospectively.
• C) change in accounting estimate for which the financial results of previous years are restated.
• D) change in accounting principle for which the financial statements of prior periods included for comparative purposes are restated.

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Definitions:

Annual Dividend

The total dividend payment a company makes to its shareholders in a year, often expressed on a per share basis.

Investor's Return

The amount of profit or loss an investor realizes on an investment, reflecting the overall performance and earnings from the investment.

Dividend Value

The portion of a company's earnings distributed to shareholders, typically in the form of cash payments.

Stock Price

The cost of purchasing a share of a particular company, which fluctuates based on market conditions, company performance, and investor sentiment.