Gov, Notes to Fin Stmts & other Disclosures $($i

When an entity changes its accounting from one generally accepted method to another generally accepted method:

Multiple Choice

financial statements of all prior years must be restated to maintain comparability.

the dollar effect of the change on both the balance sheet and income statement must be disclosed.

an explanatory note stating that the change was approved by the Financial Accounting Standards Board is required.

accounting changes like this are not permitted.