Which of the Following Should Be Reported as a Change

question 63

Multiple Choice

Which of the following should be reported as a change in accounting estimate?

• A) Change in the reported beginning inventory amount due to a discovery of a bookkeeping error
• B) Change from the completed-contract method to the percentage-of- completion method for revenue recognition on long-term construction contracts
• C) Increase in the rate applied to net credit sales from 1 percent to 1-1/2 percent in determining losses from uncollectible receivables
• D) Change made to comply with a new FASB pronouncement

---

Definitions:

World Bank

A worldwide economic entity that supplies loans and funding to the administrations of developing countries to facilitate the completion of significant infrastructure projects.

Donor Countries

Nations that provide financial or material aid to other countries for development, relief efforts, or economic assistance.

International Loans

Loans that are made across national borders, often involving different currencies and international financial institutions.

Living Standard

The quality and quantity of goods and services available to individuals or societies, including health, comfort, and leisure time activities.