Which of the Following Is an Example of a Change

question 16

Multiple Choice

Which of the following is an example of a change in accounting estimate?

• A)Switching from straight-line to the declining balance method of depreciation.
• B)Using 3% for the allowance for bad debts, instead of 1% as stated in the company's procedures manual.
• C)Using 5% for the allowance for bad debts because of the increased possibility of bankruptcy by customers.
• D)Changing from weighted average to the first-in, first-out method of inventory valuation.

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Definitions:

Deception

The act of misleading or tricking someone through false statements or actions.

Goal Oriented

A focus on setting and achieving objectives to accomplish specific aims.

Influence Process

The methods or techniques used to affect or shape the behavior, attitudes, or perceptions of others.

Senior Management

The top level of management who have the day-to-day responsibilities of managing a company or corporation.