Which of the Following Is an Example of a Change

question 37

Multiple Choice

Which of the following is an example of a change in accounting estimate?

• A) Change from the percentage-of-completion method to the completed-contract method of income recognition for long-term construction contracts
• B) Change from capitalizing research and development costs to expensing such costs
• C) Change from the gross margin method to the retail method of estimating the ending inventory
• D) Change from the Weighted Average method to the FIFO inventory method
• E) Change in the estimate of future warranty costs

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Definitions:

Early Retirement Package

A financial offer made to employees to incentivize them to retire before their standard retirement age, often as part of downsizing or cost-cutting measures.

Silver Handshake

An early retirement incentive in the form of increased pension benefits for several years or a cash bonus

Holiday Pay

Compensation for employees for designated holidays, typically without the requirement of working on those days.

Payment Time

The pre-determined or agreed upon time at which payment is made for goods provided, services rendered, or salaries for work done.