Which of the Following Is an Example of a Material

question 101

Multiple Choice

Which of the following is an example of a material accounting change that requires recognition in an unmodified opinion on the entity's financial statements?

• A)A change in the estimate of useful lives used to depreciate property, plant, and equipment.
• B)A change in the entity's form of reporting entity.
• C)Management has changed from one generally accepted accounting principle to another but has not provided reasonable justification.
• D)A change from an accounting principle that conforms with GAAP to one that does not.

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Definitions:

Approach/Approach

A decision-making conflict situation where an individual must choose between two equally appealing options.

Approach/Avoidance

Psychological concepts that describe an individual's motivation to move towards or away from a particular stimulus or situation.

Double Approach/Avoidance

A psychological conflict characterized by being drawn to and repelled by the same goal or option, which has both positive and negative aspects.

Defensive Coping

A coping mechanism that involves denying or avoiding reality to protect oneself from being psychologically harmed.