Which of the Following Is Not an Example of a Change

question 90

Multiple Choice

Which of the following is not an example of a change in accounting estimate?

• A)Change in the residual value of natural resources subject to depletion
• B)Change in the expected recovery of a deferred charge
• C)Change in the expected warranty costs on goods sold under a warranty
• D)Change in the estimated loss rate on receivables
• E)Change in the composition of inventory cost

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Definitions:

Consolidated Income Tax

Income tax accounting that includes all income, exemptions, and credits of a consolidated group of companies.

Inventory

The raw materials, work-in-progress products, and finished goods that a company holds for the purpose of sale in the near future.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level, type of income, or legal jurisdiction.

Noncontrolling Interest

A minority ownership in a subsidiary, where the parent company owns the majority but not all of the subsidiary's shares.