Accountants at Rextech Are Seriously Considering a Change in the Methods

question 177

Multiple Choice

Accountants at Rextech are seriously considering a change in the methods they use to depreciate equipment and value inventory.If they do so,the changes they make:

• A)will have no impact on the "bottom line" of the firm.
• B)will influence the cost of goods sold,but will have no impact on the firm's operating expenses.
• C)must be clearly explained to any readers of Rextech's financial statements.
• D)must be balanced by offsetting changes in the treatment of intangible assets.