Question
4. Jones Company changed its method of depreciation from the accelerated depreciation method to the straight-line method. Generally accepted accounting principles require that this accounting
4. Jones Company changed its method of depreciation from the accelerated depreciation method to the straight-line method. Generally accepted accounting principles require that this accounting principle change must be reported by
a. | restating past financial statements to retroactively present the new accounting principle |
b. | disclosing the justification for the accounting principle change and treating the accounting principle change prospectively |
c. | presenting the cumulative effect of the change in the current year's income statement and presenting pro forma effects on prior periods presented |
d. | simply justifying the change to the new accounting principle |
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