XYZ Decided to Change Its Depreciation Policy by (1)discontinuing to Record

question 84

Multiple Choice

XYZ decided to change its depreciation policy by (1) discontinuing to record depreciation on land, and (2) changing the estimated useful life on all autos used in the business from five years to four years.Choose the correct statement concerning these two changes:

• A)Both are error corrections.
• B)Both are changes in estimate.
• C)One is an error correction, and one is a change in principle.
• D)Both are changes in accounting principle.
• E)One is an error correction, and one is a change in estimate.

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Definitions:

Ethical Decision Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

Government Laws

Consist of legal rules and regulations established by governmental entities, which individuals and organizations are obliged to follow.

Greatest Good

A principle often associated with utilitarianism, focusing on actions that result in the maximum benefit or happiness for the largest number of people.

High Achievement Orientation

A personal drive to excel and meet or surpass goals, often characterized by competitiveness and a strong desire for success.