Final answer:
The given statement A company is only allowed to change depreciation methods if it can show the change results in a better measure of the company's periodic income" is True.
Step-by-step explanation:
The statement is true. A company is allowed to change depreciation methods if it can show that the change results in a better measure of the company's periodic income.
Depreciation is the allocation of the cost of an asset over its useful life, and different depreciation methods can be used to calculate this allocation.
For example, a company might initially use the straight-line depreciation method, but later decide to switch to the double-declining balance method.
If the company can demonstrate that the switch to the double-declining balance method provides a more accurate representation of the asset's actual usage and value over time, then the change would be allowed.
It's important for companies to carefully evaluate whether a change in depreciation method is necessary and justified in order to maintain accurate financial reporting.
Hence, the statement is true.