A Company Changes from Capitalizing and Amortizing Preproduction Costs to Recording

question 25

Multiple Choice

A company changes from capitalizing and amortizing preproduction costs to recording them as an expense when incurred, because future benefits associated with those costs have become doubtful.This accounting change should be recognized as a

• A)change in accounting estimate
• B)change in accounting principle
• C)change in reporting entity
• D)correction of an error

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Definitions:

Human Experience

The sum of individual and collective perceptions, feelings, thoughts, and interactions throughout one's life.

Social Exclusion

The process or act of rejecting or denying certain individuals or groups access to social interaction or inclusion within a society or group.

Physical Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage.

Interpersonal Conflicts

Conflicts that occur between two or more individuals due to differences in opinions, desires, needs, or interests.