Solved

Jack's Fireworks, Which Was Established in 2007, Changed Its Method

question 35

Multiple Choice

Jack's Fireworks, which was established in 2007, changed its method of accounting for inventories from the average cost method to the first-in, first-out (FIFO) method in 2009. Cost of goods sold for the periods 2007-2009 under FIFO and the average cost method were: Jack's Fireworks is subject to a 30% income tax rate. In its income statement for the year ended December 31, 2009, Jack's would report the cumulative effect of a change in accounting principle, net of income taxes, of:

Definitions:

Corporate Social Responsibility

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.

Sustainable Products

are goods that provide environmental, social, and economic benefits while protecting public health and the environment over their whole life cycle, from the extraction of raw materials until the final disposal.

Negative Perceptions

The unfavorable views or opinions held by individuals or groups towards a product, service, or concept.

Sustainability

Refers to the practice of meeting the needs of the present without compromising the ability of future generations to meet their own needs, often focusing on environmental, social, and economic balance.