Which of the Following Should Be Reported as a Change

question 130

Multiple Choice

Which of the following should be reported as a change in accounting estimate?

• A) change in the reported beginning inventory amount due to a discovery of a bookkeeping error
• B) increase in bad debt rate applied to net sales
• C) change from completed-contract method to the percentage-of-completion for revenue recognition
• D) change made to comply with a new FASB pronouncement

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Definitions:

Zona Glomerulosa

The outermost layer of the adrenal cortex, responsible for the production of aldosterone, which regulates blood pressure and electrolyte balance.

Acinar Cells

Cells that form acinus, secreting substances in the pancreas and salivary glands.

Zona Reticularis

The zone of the adrenal gland that secretes sex steroids, situated deepest within the adrenal cortex.

Parafollicular Cells

Cells in the thyroid gland that produce calcitonin, a hormone involved in calcium and phosphate metabolism.