Question: Generally, when a company changes from one generally accepted accounting principle to another: A) the cumulative effect of the change is reported in the income

Generally, when a company changes from one generally accepted accounting principle to another:

A) the cumulative effect of the change is reported in the income statement in the year of the change.

B) the cumulative effect of the change is reported in the income statement in the year after the change becomes effective.

C) retrospective application is required.

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