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Retained Earnings: Prior Period Adjustments
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Retained Earnings: Prior Period Adjustments
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12. Stockholders' Equity / Retained Earnings: Prior Period Adjustments / Problem 5
Problem 5
Why is it necessary to adjust retained earnings for a change in inventory costing methods?
A
To increase the company's stock price.
B
To ensure comparability of financial statements across periods.
C
To comply with tax regulations.
D
To improve management's decision-making.
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