When a Company Decides to Switch from the Double-Declining Balance

question 35

Multiple Choice

When a company decides to switch from the double-declining balance method to the straight-line method, this change should be handled as a

• A)change in accounting policy.
• B)change in accounting estimate.
• C)prior period adjustment.
• D)correction of an error.

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Definitions:

Nitrile

Organic compounds that contain a cyano group (-C≡N) attached to an alkyl group, used in the manufacture of rubbers, resins, and pharmaceuticals.

Amide

Organic compounds characterized by a carbonyl group attached to a nitrogen atom, often found in proteins and other important biological molecules.

Stereochemistry

An area of chemistry concerned with the three-dimensional arrangement of atoms in molecules and its impact on their chemical reactions and properties.

Esters

Organic compounds derived from carboxylic acids where the hydrogen in the hydroxyl group is replaced by an alkyl or aryl group, often responsible for the aroma of fruits.