Young Corporation Decided to Change Its Depreciation Policy by (1)

question 2

Multiple Choice

Young Corporation decided to change its depreciation policy by (1) changing from double-declining-balance depreciation, and (2) changing the estimated useful life on all automobiles used in the business from five years to four years.
Which of the following is correct concerning these two changes?

• A) Both are changes in accounting principle.
• B) Both are changes in accounting estimate.
• C) One is an error correction, and one is change in accounting principle.
• D) One is a change in estimate effected through a change in accounting principle, and one is a change in estimate.

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Definitions:

Social Stratification

The hierarchical organization of a society into levels or classes based on factors like wealth, occupation, education, and power.

Grave Goods

Items such as utensils, figurines, and personal possessions, symbolically placed in the grave for the deceased person's use in the afterlife.

Skeletal Stress

Physical stress on bones, often leading to adaptations or injuries, indicative of lifestyle or activities.

Inca Empire

A large empire in pre-Columbian America, known for its advanced administrative, agricultural, and architectural achievements, centered in present-day Peru.