Which Type of Accounting Change May Be Accounted for in Current

question 37

Multiple Choice

Which type of accounting change may be accounted for in current and future periods only?

• A) change in accounting estimate
• B) change in inventory costing method
• C) change in accounting policy
• D) correction of an error

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Definitions:

Market Equilibrium

A situation in which market supply equals market demand, and prices stabilize.

Demand Price

The highest price consumers are willing to pay for a good or service at a given quantity, reflecting the value placed on the item by the market.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Imposes a Quota

A restriction, set by a government, on the maximum number of units of a particular product that can be imported or exported within a given period.