Which of the Following Is a Change in an Estimate

question 16

Multiple Choice

Which of the following is a change in an estimate?

• A)A company changes the presentation of operating expenses from "by function" to "by nature."
• B)An enterprise switches from the gross method to the net method of presenting government grants.
• C)A temporary difference was treated as a permanent difference.
• D)The useful life on a building was originally estimated to be 20 years but the estimated useful life of the building is changed to only 15 years as at the beginning of the year.

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Definitions:

Purchasing Power

The valuation of a currency based on the volume of goods or services it can buy per unit.

CPI

The Consumer Price Index, a tool that inspects the generalized weighted average prices of a multitude of consumer services and goods, such as food, transportation, and medical services.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Base Date

A specific point in time selected as a reference or starting point for calculations, measurements, or comparisons.