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Which of the following would not be accounted for using the prospective approach

ID: 2398831 • Letter: W

Question

Which of the following would not be accounted for using the prospective approach (“Prospective approach” means only applying the change to current and future periods without adjusting beginning balances of related accounts)?

Question 4 options:

A change to LIFO from FIFO for inventory costing.

A change in price indexes used under the LIFO method of inventory costing.

A change in estimate.

A change from the cash basis to accrual accounting.

A change to LIFO from FIFO for inventory costing.

A change in price indexes used under the LIFO method of inventory costing.

A change in estimate.

A change from the cash basis to accrual accounting.

Explanation / Answer

answer)A change from the cash basis to accrual accounting.

not be accounted for using the prospective approach

answer)A change from the cash basis to accrual accounting.

not be accounted for using the prospective approach

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