If a Company Changes the Method It Uses to Compute

question 12

Multiple Choice

If a company changes the method it uses to compute the allowance for uncollectible accounts receivable because more recent information has become available, how is this change in method is accounted for?

• A) The change is only reported in the current period in which the change is made.
• B) The change is reported in all future periods affected by the change.
• C) Previously issued financial statements are not adjusted by the change.
• D) All of these are correct ways to account for the change.

Understand the concept and impact of irrational beliefs on mental health.

Distinguish between Type A and Type B personality traits.

Recognize the stages of the general adaptation syndrome (GAS) and their significance.

Assess the effect of life changes and daily hassles on stress levels.

---

Definitions:

Decrease in Supply

A situation where the quantity of a good or service that producers are willing to offer for sale at a given price level decreases.

Decrease in Demand

A reduction in the quantity of a good or service that consumers are willing and able to purchase at a given price range.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing to buy.