Which of the Following Is an Example of an Error

question 137

Multiple Choice

Which of the following is an example of an error that should be corrected?

• A)Switching from straight-line to the declining balance method of depreciation.
• B)Changing from weighted average to the first-in, first out method of inventory valuation.
• C)Using 5% for bad debts provision, but 1% is required in the company's procedures manual.
• D)Starting to capitalize fixed assets under $1,000 which were previously considered immaterial.

---

Definitions:

Measurements

The act or process of determining the size, quantity, or degree of something using standard units.

Possible

That which can be done or achieved; within the limits of ability, capacity, or realization.

Standard Error

A measure of the dispersion or variation of sample means around the population mean.

Sample Correlation

A statistical measure that indicates the degree to which two variables change together, based on a sample of data, showing whether the relationship is positive, negative, or nonexistent.