Question

Which of the following is not a change in accounting principle usually accounted for by retrospectively revising prior financial statements?

a) Change from sum-of-the-years'-digits to double-declining balance depreciation method
b) Change from FIFO to the average method
c) Change from the average method to FIFO
d) Change from LIFO to FIFO

Answer 1

The correct answer is c) Change from the average method to FIFO. This change does not require the revision of prior financial statements.

Step-by-step explanation:

The correct answer is c) Change from the average method to FIFO. A change from the average method to FIFO is not a change in accounting principle that requires the revision of prior financial statements. This change relates to the inventory valuation method, which affects the cost of goods sold and ending inventory. However, it does not require the retrospective revision of prior financial statements.