A Retrospectively Applied Change in Accounting Policy Relating to Fixed

question 144

True/False

A retrospectively applied change in accounting policy relating to fixed assets where a company changes from the straight-line amortization method to the double-declining balance method would result in a decrease to opening retained earnings.

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Definitions:

Covey

A small flock of birds, often used metaphorically to describe a group of similar things or individuals.

Organization

An entity composed of individuals and resources structured to achieve specific objectives or perform a set of tasks.

Planning

The process of setting goals, defining strategies to achieve those goals, and developing plans to integrate and coordinate activities.

Priority Oriented

An approach or methodology focused on identifying, organizing, and addressing tasks or objectives based on their importance or urgency.