Which of the Following Is Accounted for as a Change

question 20

Multiple Choice

Which of the following is accounted for as a change in accounting policy?

• A)A change in the estimated useful life of plant assets.
• B)A change from the cash basis of accounting to the accrual basis of accounting.
• C)A change from expensing immaterial expenditures to deferring and amortizing them as they become material.
• D)A change in inventory valuation from average cost to FIFO.

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Definitions:

Cake-Decorating

The art and skill of creating designs on cakes using icing, fondant, and other edible decorations, often for special occasions.

Industrial Reorganization

The process of restructuring the operations, structure, or ownership of companies in an industry to increase efficiency or adapt to market changes.

Implementation

The part of the entrepreneurial process that occurs when the organization is formed.

Entrepreneurial Process

It involves identifying a business opportunity, developing resources, and managing the business to achieve objectives.