Question

When a company changes from one inventory costing method to another, the change must be fully disclosed in a footnote to the financial statements explaining the reasons for the change and the effect on net income.
A. True
B. False

Answer 1

Answer:

A. True

Explanation:

In the case when the company wants to change from one method of inventory to the other method of inventory so this would be disclosed in the foot note of the financial statement with a proper reason and also the impact on the net income would be disclosed

Therefore the given statement is true