The Cumulative Effect on Prior Years' Earnings of a Change

question 30

Multiple Choice

The cumulative effect on prior years' earnings of a change in accounting principle should be reported separately as an adjustment to retained earnings for the earliest period presented for all of the following changes except

• A) completed-contract method of accounting for long-term construction-type contracts to the percentage-of-completion method.
• B) percentage-of-completion method of accounting for long-term construction-type contracts to the completed-contract method.
• C) FIFO method of inventory pricing to LIFO method.
• D) LIFO method of inventory pricing to the weighted-average method.

Grasp the role and impact of competitive advantage in marketing.

Recognize the importance of analyzing buying behavior for targeting markets.

Comprehend the relationship between sales forecasting and marketing planning.

Understand the evolution of marketing concepts and strategies over time.

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Definitions:

Forward Exchange Rate

A contractually fixed exchange rate for the future exchange of currencies at a specified date, used to hedge against foreign exchange risk.

Arbitrage

The simultaneous purchase and sale of the same assets in different markets to exploit price differences for a profit.

Risk-free Rate

The expected yield from an investment that carries no risk of losing money, often identified by the returns on government bonds.

Futures Market

A financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future.