Which of the Following Is Not a Change in Accounting

question 110

Multiple Choice

Which of the following is not a change in accounting principle that usually is accounted for by retrospectively revising prior financial statements?

• A) Change from FIFO to the average method of inventory costing.
• B) Change from SYD to DDB depreciation.
• C) Change from the average method of inventory costing to FIFO.
• D) Change from the LIFO to the FIFO method of inventory costing.

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Definitions:

Claim

A demand for something due or believed to be due, typically a request for payment in accordance with an insurance policy or other formal agreement.

Involuntary Petition

A legal process initiated by creditors requesting a court to declare a debtor bankrupt when the debtor hasn't voluntarily filed for bankruptcy.

Order for Relief

A court order in bankruptcy proceedings that grants the petitioner, usually a debtor, protection from creditors and sanctions the commencement of bankruptcy proceedings.

Fraudulent Transfer

The act of illegally transferring property to another party in order to evade creditors or the law.