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:

Budgeted Cost PURCHASES

Budgeted cost purchases refer to the projected expenditure for acquiring goods or services as planned within a budget period, usually part of a company's purchasing budget.

Required for Production

The materials, labor, and overhead expenses needed to manufacture a product.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, considered a current asset on the balance sheet.

Sales Collected

The actual revenue received from customers, including cash sales and collections on account receivables.