When a Change in Depreciation Method Occurs

question 111

Multiple Choice

When a change in depreciation method occurs

• A) prior years' financial statements should be changed to reflect the newly adopted method.
• B) the change should be reported in current and future years.
• C) the cumulative effect of the change should be reflected on the income statement as of the beginning of the next year.
• D) the cumulative effect of the change in accounting principle should be classified as an discontinued operations on the income statement.

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Definitions:

Maintenance

The process of preserving a condition or situation or the state of being preserved.

Type D Personality

A personality type characterized by high levels of stress and negativity, often associated with a higher risk of cardiovascular problems.

Depressed

Experiencing a persistent feeling of sadness or loss of interest that leads to various physical and emotional problems.

Pessimistic

Having a tendency to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.