The cumulative effect of a change in accounting principle is reported: on the income statement as part of discontinued operations. on the retained earnings statement as an adjustment to the beginning balance of the earliest year presented. on the retained earnings statement as an adjustment to the beginning balance of the current year. on the income statement as an extraordinary item.

Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position