Which of the Following Isnot a Change in Accounting Principle

question 20

Multiple Choice

Which of the following isnot a change in accounting principle?

• A) A change from FIFO to LIFO for inventory valuation
• B) A change from completed-contracts to percentage-of-completion
• C) A change from eight years to five years in the useful life of a depreciable asset
• D) A change from double-declining-balance to straight-line depreciation

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Definitions:

Enterprise Fund

A fund typically used by government entities to account for operations financed by fees and charges for services provided.

Fund Financial Statements

Financial reports that focus on the assets, liabilities, revenues, and expenses of governmental funds, proprietary funds, or fiduciary activities managed by a government or nonprofit organization.

Purchase Order

A commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Consumption Method

An accounting practice that records the cost of goods sold at the time they are consumed or sold, as opposed to when they are purchased.