Where a Change in Accounting Estimates Occurs,the Following Should Be

question 2

Multiple Choice

Where a change in accounting estimates occurs,the following should be disclosed:

• A)the fact that the amount of the effect on future periods will not be disclosed because estimating that amount is impracticable.
• B)the reason for the change and comparative data to show the effect with and without the change.
• C)the nature of the change and the impact on previous statements of profit and loss.
• D)the fact that the amount of the effect on future periods will not be disclosed because estimating that amount is impracticable and the reason for the change and comparative data to show the impact with and without the change.

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Definitions:

Growth Rate

A measure of how much a particular variable, such as revenue, profit, or investment value, increases over a specific period.

WACC

The Weighted Average Cost of Capital measures a corporation's capital costs by proportionally weighting each capital category involved.

Capital Budgeting

The process a business undertakes to evaluate and select long-term investments that are likely to pay off over several years.

Divisional Cost

Costs that are attributed to a specific division within a company, often used for measuring the division's performance and profitability.