Which of the Following Is a Change in Accounting Principle

question 94

Multiple Choice

Which of the following is a change in accounting principle?

• A) a change in the estimated service life of machinery
• B) a change from FIFO to weighted average for inventory costing
• C) a change in the estimated allowance for bad debts
• D) a change in estimated future warranty expense

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Definitions:

Policy Change

A modification or adjustment to existing rules, protocols, or regulations within an organization, system, or government.

Low-Income Families

Households earning significantly below the average income level, often facing financial hardship and limited access to resources.

Equitable

Pertains to fairness or impartiality in the distribution of benefits and burdens within society.

Marginal Cost

The extra expenditure involved in generating an additional unit of a product or service.