15. A company is justified in changing from one generally accepted accounting pr

Question

15.       A company is justified in changing from one generally accepted accounting principle to another generally accepted accounting principle only if

a.

the change decreases the entity's reported net income

b.

the change both improves the financial statement presentation and increases the entity's reported net income

c.

the change produces more informative financial statements

d.

approval is first obtained from the Financial Accounting Standards Board

a.

the change decreases the entity's reported net income

b.

the change both improves the financial statement presentation and increases the entity's reported net income

c.

the change produces more informative financial statements

d.

approval is first obtained from the Financial Accounting Standards Board

Explanation / Answer

A company is justified in changing from one generally accepted accounting principle to another generally accepted accounting principle only if the change produces more informative financial statements Option C is correct

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