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michael lawson
on Dec 05, 2024

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Reporting "changes in accounting principles" is important because

A) FASB has declared a new GAAP
B) consistent application improves intracompany comparability
C) the use of FIFO inventory reporting by all companies must be properly disclosed
D) readers of financial statements must know of changes in accounting techniques

FIFO Inventory Reporting

An approach to reporting inventory where the oldest stock is recorded as sold first; reiterates the First-In, First-Out method in financial statements.

Consistent Application

The principle that accounting rules and methods should be applied the same way in each accounting period to ensure comparability of financial statements.

  • Apprehend the essential tenets and implications stemming from adjustments in accounting principles and estimates.
  • Analyze the effects of financial statement presentation choices on stakeholders' decision-making.
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TG
Taylor GrahamDec 06, 2024
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