When changing from the average cost method to FIFO, the company: Multiple Choice Includes in current year's income the cumulative after-tax difference that would have resulted if the company had used FIFO in all prior years. Revises comparative financial statements. Records a journal entry to adjust the book balances from their current amounts to what those balances would have been using FIFO. All of these answer choices are correct. (I have checked Revises comparative financial statements. and Records a journal entry to adjust the book balances from their current amounts to what those balances would have been using FIFO. both them are wrong)

Question

Charlie Crawford

Business

28 May, 01:48

When changing from the average cost method to FIFO, the company: Multiple Choice Includes in current year's income the cumulative after-tax difference that would have resulted if the company had used FIFO in all prior years. Revises comparative financial statements. Records a journal entry to adjust the book balances from their current amounts to what those balances would have been using FIFO. All of these answer choices are correct. (I have checked Revises comparative financial statements. and Records a journal entry to adjust the book balances from their current amounts to what those balances would have been using FIFO. both them are wrong)

+3

Answers (1)

Know the Answer?

Melany Shea · Answer 1

Check the following explanation

Explanation:

When changing from the average cost method to FIFO, the company: Multiple Choice Includes in current year's income the cumulative after-tax difference that would have resulted if the company had used FIFO in all prior years.