Multiple Choice
Which of the following statements regarding changing inventory methods is true?
A) A change in inventory methods can be justified if the change is made to better match profits with revenue.
B) Changing inventory methods affects consistency.
C) One place that the reader of an annual report would be able to identify that a company changed inventory methods is the statement of stockholders' equity.
D) Tax advantages are valid justification for changing inventory methods.
Correct Answer:
Verified
Correct Answer:
Verified
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