Which of the Following Disclosures Is Required for a Change

question 44

Multiple Choice

Which of the following disclosures is required for a change from sum-of-the-years-digits to straight-line depreciation method?

• A) The cumulative effect on prior years, net of tax, in the current retained earnings statement
• B) Restatement of prior years' income statements
• C) Recomputation of current and future years' depreciation
• D) All of these are required.

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Definitions:

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points relative to its mean.

Service Level

A measure of the quality and performance of a service, often reflecting the degree to which customer expectations are met.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out those values are from the mean.

Safety Stock

An additional quantity of an item held in inventory to reduce the risk that the item will be out of stock.