Social Studies, 28.12.2021 14:00 miracle9704
Lore Co. changed from the cash basis to the accrual basis of accounting during 2005. The cumulative effect of this change should be reported in Lore's 2005 financial statements as a
A. Prior period adjustment resulting from the correction of an error.
B. Prior period adjustment resulting from the change in accounting principle.
Prior period adjustments do not result from changes in accounting principle. Therefore, this answer could never be correct.
C. Adjustment to retained earnings for an accounting principle change.
D. Component of income after extraordinary item.
Answers: 2
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Lore Co. changed from the cash basis to the accrual basis of accounting during 2005. The cumulative...
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