Which of the Following Changes Would Be Accounted for Prospectively

question 103

Multiple Choice

Which of the following changes would be accounted for prospectively?

• A)Error corrections
• B)Changing from declining-balance depreciation to straight-line depreciation
• C)Change in the expected life of a depreciable asset
• D)First time presentation of assumption financial statements with the FIFO cost flow

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Definitions:

Private Value

The individual valuation of a good or service to a particular consumer or producer, not taking into account external effects or social welfare.

External Benefits

Positive effects of a product or service on individuals or entities who are not directly involved in the transaction or production of the product or service.

External Benefit

A positive effect or advantage that results from a product or service's use, affecting individuals or entities who are not directly involved in the transaction.

Positive Externality

A beneficial effect experienced by a third party or the society as a whole, resulting from an economic transaction.