When a Company Changes from One Acceptable Accounting Method to Another

question 89

Multiple Choice

When a company changes from one acceptable accounting method to another, the change is reported

• A) in the statement of retained earnings, as a correction to the beginning balance.
• B) in the income statement, below income from continuing operations.
• C) in the income statement, above income from continuing operations
• D) through a retroactive restatement of prior period earnings.

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Definitions:

Two-pedal AMTs

Automated Manual Transmissions that eliminate the need for a clutch pedal, simplifying driving by using only accelerator and brake pedals.

Centrifugal Clutch

An automatic clutch that uses centrifugal force to engage the drivetrain as the engine's rpm increases, commonly found in small vehicles and machines without a manual clutch.

Fully Engaged

The condition in which a mechanism or system is in its most complete or operative state, typically referring to mechanical connections or processes.