Which of the Following Is an Example of a Change

question 53

Multiple Choice

Which of the following is an example of a change in accounting principle?

• A) A change in inventory costing methods.
• B) A change in the estimated useful life of a depreciable asset.
• C) A change in the actuarial life expectancies of employees under a pension plan.
• D) Consolidating a new subsidiary.

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Definitions:

Form 1040EZ

A simplified tax form for individuals with straightforward financial situations, allowing them to report income and calculate taxes owed.

Taxable Income

The portion of an individual's or corporation's income used to determine how much tax is owed to the government.

Filing Status

A category that describes a taxpayer's marital and family situation, affecting the tax rates and standard deductions they are eligible for.

Tax Liability

The total amount of tax owed by an individual, corporation, or other entity to the taxing authority.