Which of the Accounting Changes Listed Below Is More Associated

question 23

Multiple Choice

Which of the accounting changes listed below is more associated with financial statements prepared in accordance with U.S. GAAP than with International Financial Reporting Standards (IFRS) ?

• A) Change in estimated useful life of depreciable assets.
• B) Change from the FIFO method of costing inventories to the LIFO method.
• C) Change in depreciation method.
• D) Change in reporting entity.

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Definitions:

Useful Life

The expected period over which a fixed asset is projected to be usable by a company, affecting its depreciation or amortization schedules.

Maintenance and Repairs Expense

Costs incurred to keep property, plant, and equipment in operating condition and to fix unexpected breakdowns.

Closing Costs

These are fees and expenses, aside from the price of the property, paid by buyers and sellers when transferring ownership of a property.

Freight-In

The cost of transporting goods into a warehouse or to the buyer, which is typically included in the cost of goods sold.