Question

In: Accounting

Accounting for a change from FIFO to LIFO will include: Select one: a. An adjustment to...

Accounting for a change from FIFO to LIFO will include:

Select one:

a. An adjustment to Retained Earnings, but not a Restatement of prior-year presented financial statements.

b. A Restatement of prior-year presented financial statements, but not an adjustment to Retained Earnings.

c. Both an adjustment to Retained Earnings and a Restatement of prior-year presented financial statements.

d. Neither an adjustment to Retained Earnings nor a Restatement of prior-year presented financial statements.

Solutions

Expert Solution

Accounting for a change from FIFO to LIFO will include an adjustment to Retained Earnings, but not a Restatement of prior-year presented financial statements because it would be too difficult and therefore impractical.

Correct answer is option a.

ekkarill92 answered 1 year ago
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