A change from one acceptable accounting method to another is reported

A) on the statement of retained earnings, as a correction to the beginning balance
B) on the income statement, below income from continuing operations
C) on the income statement, above income tax expense
D) through a retroactive restatement of prior period earnings

Accounting Method

A set of rules used to determine when and how income and expenses are reported in the financial statements, such as cash basis or accrual basis accounting.

Retained Earnings

Retained earnings refer to the portion of net income left over after dividends are paid out to shareholders, which is reinvested into the company.

Retroactive Restatement

Adjusting previously reported financial statements to reflect better understanding or corrections of past errors.