"As Described in Note 5 to the Financial Statements,General Express

question 12

Multiple Choice

"As described in Note 5 to the financial statements,General Express changed its statistical method of computing product warranty expense for the year ended December 31,2017.." is an illustration of a

• A)Consistency change requiring a qualified opinion.
• B)Scope limitation.
• C)Departure from generally accepted accounting principles
• D)Report with a consistency modification.

---

Definitions:

Capitalized Loss

A loss from an investment or asset that is added to the cost basis of another asset, rather than being immediately expensed.

Long-Term Investments-AFS

Available-for-sale long-term investments are those not classified as held-to-maturity or trading securities, and are reported at fair market value.

Short-Term Investments-AFS

Assets that are readily marketable and intended to be converted into cash within a short period, typically a year, classified as "Available for Sale."

Notes Payable

Short or long-term liabilities representing amounts the company owes on written promises to pay specified sums of money at future dates.