A Change from Moving Weighted Average to FIFO Reporting Is

question 13

Multiple Choice

A change from moving weighted average to FIFO reporting is

• A)A change that results in a discontinued operation
• B)A change in accounting principle and is allowed if it improves the usefulness of information in the financial statements
• C)Not allowed once an inventory costing method has been chosen
• D)Allowed if it improves the usefulness of information in the financial statements
• E)A change in accounting principle and is not allowed even if it improves the usefulness of information in the financial statements

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Definitions:

Governmental Resources

Resources managed or owned by the government, including financial, natural, and human resources, used to provide public services.

Personal Gain

Refers to the increase in wealth, status, or beneficial outcomes for an individual, often viewed in the context of motives or outcomes of actions.

Adverse Selection

A situation where asymmetric information leads buyers or sellers to make counterproductive selections, commonly seen in insurance markets.

Regulatory Capture

Regulatory capture is a situation where regulatory agencies are dominated by the industries they are supposed to be regulating, leading to decision making that benefits the industry rather than the public.