An Example of a Special Change in Accounting Principle That

question 61

Multiple Choice

An example of a special change in accounting principle that should be reported by restating the financial statements of prior periods is the change from the:

• A) Straight-line method of depreciating plant equipment to the sum-of-the-years'-digits method.
• B) Sum-of-the-years'-digits method of depreciating plant equipment to the straight-line method.
• C) FIFO method of inventory valuation to the Weighted Average method.
• D) All of these choices are correct.

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Definitions:

Business

The practice of engaging in commerce, trading, manufacturing, or services as a means of livelihood or profit.

Corporate Competition

The rivalry between companies in the same industry for market share and customer loyalty.

Revitalization

The process of invigorating or renewing something to a state of improved health, activity, or prominence.

Restructuring

The process of altering the organizational structure, processes, or practices of a company to improve efficiency, performance, or adapt to new markets.