When a Change in Depreciation Method Occurs

question 37

Multiple Choice

When a change in depreciation method occurs

• A)prior years' financial statements should be changed to reflect the newly adopted method.
• B)the change should be reported in current and future years.
• C)the cumulative effect of the change should be reflected on the income statement as of the beginning of the next year.
• D)the cumulative effect of the change in accounting principle should be classified as a discontinued operations on the income statement.

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Definitions:

Pragmatists

refers to individuals or philosophies focused on practical approaches to problems and affairs, emphasizing actions and results over abstract principles.

Meaningful Work

Professions or duties that contributors perceive as having a significant positive impact, contributing to a greater good or personal fulfillment.

Monetary Rewards

Financial benefits given to employees as recognition for their work or achievements, often in the form of bonuses, salary increases, or commissions.

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Activities or processes that are continuously conducted or repeated over time, forming a regular pattern or routine.