XYZ Decided to Change Its Depreciation Policy by (1)discontinuing to Record

question 151

Multiple Choice

XYZ decided to change its depreciation policy by (1) discontinuing to record depreciation on land,and (2) changing the estimated useful life on all autos used in the business from five years to four years.Choose the correct statement concerning these two changes:

• A) Both are changes in accounting principle.
• B) Both are changes in estimate.
• C) Both are error corrections.
• D) One is an error correction, and one is a change in principle.
• E) One is an error correction, and one is a change in estimate.

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Definitions:

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at various prices.

Labor Services

The physical and mental efforts that people contribute to the production of goods and services.

Technology Changes

The process of innovation and the adoption of new or improved technologies and systems.

Demand For Labor

The total amount of hours of work that employers are willing to pay for at a given wage rate in the economy.