A Publicly Accountable Enterprise Changes from Straight-Line Depreciation to Double

question 7

Multiple Choice

A publicly accountable enterprise changes from straight-line depreciation to double declining balance. Management feels that this will result in equally reliable and more relevant information; thus it will be treated as a change in accounting policy. The entry to record this change should include a

• A) debit to Accumulated Depreciation.
• B) credit to Other Comprehensive Income.
• C) credit to Deferred Tax Asset.
• D) debit to Deferred Tax Liability.

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Definitions:

Predicting Behaviour

The process of forecasting individuals' actions based on factors such as past behavior, psychological tendencies, or situational variables.

Original Fishbein Model

An attitude model suggesting that an individual's attitude towards an object is a function of their beliefs about and evaluation of several of its attributes.

Descriptive Norm

Norms that convey information about what is commonly done in specific situations.

Immediate Setting

The direct physical environment surrounding an individual at any given time, which can influence behavior and perception.