Which of the Following Is an Example of a Change

question 127

Multiple Choice

Which of the following is an example of a change in accounting estimate?

• A)Change from the percentage-of-completion method to the completed-contract method of income recognition for long-term construction contracts
• B)Change from the Weighted Average method to the FIFO inventory method
• C)Change from the gross margin method to the retail method of estimating the ending inventory
• D)Change from capitalizing research and development costs to expensing such costs
• E)Change in the estimate of future warranty costs

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Definitions:

Voluntary Deductions

Amounts that a person chooses to have withheld from their paycheck, such as contributions to retirement plans or health insurance premiums.

Payroll Expenses

Costs associated with compensating employees, including wages, salaries, bonuses, and related taxes and benefits.

Net Pay

The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been subtracted.

Gross Pay

Gross pay refers to the total amount of money an employee earns before any deductions are taken out.