Question

When changing from the average cost method to FIFO, the company: Multiple Choice Includes in current year’s income the cumulative after-tax difference that would have resulted if the company had used FIFO in all prior years. Revises comparative financial statements. Records a journal entry to adjust the book balances from their current amounts to what those balances would have been using FIFO. All of these answer choices are correct. ( I have checked Revises comparative financial statements. and Records a journal entry to adjust the book balances from their current amounts to what those balances would have been using FIFO. both them are wrong )

Answer 1

Answer:

Check the following explanation

Explanation:

When changing from the average cost method to FIFO, the company: Multiple Choice Includes in current year’s income the cumulative after-tax difference that would have resulted if the company had used FIFO in all prior years.