Question: TB MC Qu . 0 8 - 6 0 How should a change from one generally... How should a change from one generally accepted accounting

TB MC Qu.08-60 How should a change from one generally...
How should a change from one generally accepted accounting principle to another accepted principle be handled in a third-quarter income statement?
Multiple Choice
Retrospectively restate the first-quarter income statement, net of income taxes, as though the change occurred at the beginning of the year.
Postpone recording of the change to the annual income statement.
These changes are prohibited by GAAP.
Adjust financial statements for each prior period presented to reflect the effects of the new principle in those reported periods.
Record the change in the third-quarter income statement, net of income taxes.

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