Which of the Following Accounting Changes Requires an Emphasis-Of-Matter Paragraph

question 40

Multiple Choice

Which of the following accounting changes requires an emphasis-of-matter paragraph regarding consistency in the auditors' report?

• A) A change in the estimated useful lives of a class of fixed assets.
• B) A write-off of a patent because future benefits do not appear to exist.
• C) A change from the straight-line method of depreciation to an accelerated method for a class of fixed assets.
• D) A change in calculating bad debt expense from one percent to two percent of credit sales.

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Definitions:

Metaphorical Relationships

The connections or associations between two disparate entities where one serves as a symbol or representation of the other.

Spatial Relationships

This involves understanding how objects or shapes are positioned in space in relation to each other.

Independent Variable

In research, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Spatial Reasoning

The cognitive ability to manipulate, organize, and visualize spatial relationships or objects in one's mind, important in solving math and science problems and in everyday tasks such as navigation.