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Butler Products Decided in 2016 to Change Inventory Methods to More

Question 223

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Butler Products decided in 2016 to change inventory methods to more effectively report its results of operations.In the past,management has measured its ending inventories by the average-cost method and they now believe that FIFO is a better representation of its profitability. Butler Products decided in 2016 to change inventory methods to more effectively report its results of operations.In the past,management has measured its ending inventories by the average-cost method and they now believe that FIFO is a better representation of its profitability. Ignoring income tax,which one of the following journal entries correctly records the change in the accounting principle at January 1,2016? A) No journal entry need for prospective application of the change in principle. B) C) D) Ignoring income tax,which one of the following journal entries correctly records the change in the accounting principle at January 1,2016?


A) No journal entry need for prospective application of the change in principle.
B) Butler Products decided in 2016 to change inventory methods to more effectively report its results of operations.In the past,management has measured its ending inventories by the average-cost method and they now believe that FIFO is a better representation of its profitability. Ignoring income tax,which one of the following journal entries correctly records the change in the accounting principle at January 1,2016? A) No journal entry need for prospective application of the change in principle. B) C) D)
C) Butler Products decided in 2016 to change inventory methods to more effectively report its results of operations.In the past,management has measured its ending inventories by the average-cost method and they now believe that FIFO is a better representation of its profitability. Ignoring income tax,which one of the following journal entries correctly records the change in the accounting principle at January 1,2016? A) No journal entry need for prospective application of the change in principle. B) C) D)
D) Butler Products decided in 2016 to change inventory methods to more effectively report its results of operations.In the past,management has measured its ending inventories by the average-cost method and they now believe that FIFO is a better representation of its profitability. Ignoring income tax,which one of the following journal entries correctly records the change in the accounting principle at January 1,2016? A) No journal entry need for prospective application of the change in principle. B) C) D)

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