Which of the Following Is a Change in Policy

question 38

Multiple Choice

Which of the following is a change in policy?

• A)A company changes from the gross method to the net method of recording cash discounts.
• B)A change in the terms of a loan from repayment on demand to a fixed repayment date two years after the fiscal year-end.
• C)A contingency for a lawsuit that was evaluated to be likely to lead to an outflow of resources was ultimately resolved against the reporting entity.
• D)A temporary tax difference was treated as permanent tax difference.

Identify different types of patterns (trend, cycle, level shift, instability) in control charts and their implications.

Calculate and interpret the average run length (ARL) in the context of control charts.

Describe the concepts of assignable variation and chance variation and give relevant examples.

Understand the repercussions of Type I and Type II errors in the context of quality control and production processes.