Which of the Following Changes Should Be Accounted for Using

question 152

Multiple Choice

Which of the following changes should be accounted for using the retrospective approach?

• A) A change in the estimated life of a depreciable asset.
• B) A change from straight-line to declining balance depreciation.
• C) A change to the LIFO method of costing inventories.
• D) A change in accounting for long-term construction contracts by recognizing revenue over time rather than when the contract is completed.

---

Definitions:

Peer-to-Peer Services

A decentralized model where two individuals interact directly with each other, without intermediary third-parties, often facilitated by digital platforms.

Moore's Law

The observation that the number of transistors on integrated circuits doubles approximately every two years, leading to exponential increases in computing power.

High-Level Miniaturization

The process of making devices or components smaller and more efficient while maintaining or enhancing their functionality.

Peer-to-Peer Lender

A financial arrangement where individuals lend and borrow money directly from each other, bypassing traditional financial institutions.