How many of the following statements are incorrect about the effects of changing inventory assumption under U.S. GAAP? Statement 1: When a firm changes to LIFO from another costflow method, the change is applied prospectively with no adjustments to prior periods.Statement 2: In most cases, a change in inventory method entails retrospective changes in the financial statements.Statement 3: A change in inventory method entails an adjustment to the beginning balance of retained earnings of the current year bearing the cumulative effect of the stated change.

Group of answer choices

a. Two

b. None of the above

c. One