When a Company Decides to Switch from the Double-Declining Balance

question 46

Multiple Choice

When a company decides to switch from the double-declining balance method to the straight-line method, this change should be handled as a

• A) change in accounting principle.
• B) change in accounting estimate.
• C) prior period adjustment.
• D) correction of an error.

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Definitions:

Major Failure

A significant breakdown or malfunction in a system, project, or product that impedes its intended function.

Exemption Clauses

Provisions in a contract that aim to limit or exclude one party's liability in certain circumstances.

Exculpatory Clauses

Provisions in a contract that relieve one party from liability for wrongdoing.

Restrictions

Limitations or conditions imposed on activities, operations, or behaviors to regulate them legally or socially.