Which Type of Accounting Change Should Always Be Accounted for in Current

question 115

Multiple Choice

Which type of accounting change should always be accounted for in current and future periods?

• A)Correction of an error
• B)Change in inventory costing methods
• C)Change in accounting principle
• D)Change in accounting estimate

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Definitions:

Merchantability

A warranty implied by law that goods sold by a merchant are fit for the general purpose for which they are sold.

Remedy Limitation

Restrictions or caps placed on the type or amount of compensation that can be received in a legal claim or lawsuit.

Unconscionable

A term describing actions or terms that are so unjust or overwhelmingly one-sided in favor of the party who has the superior bargaining power.

Express Warranty

An explicit guarantee by the seller about the condition or quality of a product.