how-is-retained-earnings-adjusted-for-a-change-in-inventory-costing-methods

Question

How is retained earnings adjusted for a change in inventory costing methods?

Accepted Answer

By crediting retained earnings for the cumulative effect of the change.

Answer

By adjusting current period earnings only.

Answer

By debiting retained earnings for the cumulative effect of the change.

Answer

By adjusting future period earnings only.