Which of the Following Statements Is Correct

question 149

Multiple Choice

Which of the following statements is correct?

• A)An error affecting prior year's depreciation is treated as a change in estimate.
• B)A change in estimated useful life for a building should cause a correction to prior years' retained earnings.
• C)A change in method of accounting for depreciation should cause an adjustment to current year's depreciation expense and a cumulative effect for the effect of the change on prior year's earnings.
• D)A cumulative effect will never be accompanied by a related tax effect

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Definitions:

Cultural System

An integrated network of culturally related elements, such as beliefs, practices, norms, and values that influence and guide the behavior of individuals within a particular society.

Ecology

The branch of biology that studies the relationships between organisms and their environment.

Ideology

A system of ideas, beliefs, and values, especially one that forms the basis of economic or political theory and policy.

Individualist

A person who prioritizes personal goals and independence over collective goals and conformity.