Which of the Following Is Not an Example of a Change

question 38

Multiple Choice

Which of the following is not an example of a change in accounting principle?

• A) A change in the useful life of a depreciable asset.
• B) A change from LIFO to FIFO for inventory costing.
• C) A change to the full costing method in the extractive industries.
• D) A change to the equity method of accounting for investments.

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Definitions:

Mezzanine Investors

Investors who provide capital to businesses in the form of subordinated debt or preferred equity, often representing a middle layer of financing between senior debt and common equity.

Attractive

Pleasing or appealing to the senses, often used in marketing to describe products or services that draw customer interest.

Criterion

A standard, rule, or principle by which something may be judged or decided, often used in decision-making processes.

Size of Fund

Refers to the total amount of capital that a fund, such as a mutual fund, hedge fund, or venture capital fund, has available for investment.