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.

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Definitions:

Operations Chart

A chart depicting right- and left-hand motions.

Right-Hand/Left-Hand Chart

A visual tool used to analyze the workflow and ergonomics in tasks, indicating actions done by the right and left hands to improve efficiency and reduce fatigue.

Idle Time

Periods when resources, such as machinery or employees, are available but not in use due to a lack of work or inefficient scheduling.

Kanbans

Signaling systems used in just-in-time (JIT) production processes to regulate the flow of materials between different stages of production.