Which of the Following Is an Example of a Change

question 135

Multiple Choice

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

• A)Changing from weighted average to the first-in, first-out method of inventory valuation.
• B)Capitalizing a delivery truck that had previously been expensed.
• C)Using 5% for the allowance for bad debts because of the increased possibility of bankruptcy by customers.
• D)Using 4% for the allowance for bad debts, instead of 2% as stated in the company's procedures manual.

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Definitions:

Field Discharge Resistor

A resistor used to safely discharge stored energy from the field winding of a motor or generator during shutdown.

Parallel

Referring to lines, paths, or components side by side that do not intersect or converge, often used in electrical circuits to indicate a specific type of connection.

Sufficient Power

Sufficient power refers to the minimum amount of energy required to properly operate a device or system according to its specifications.

Revolving-armature-type

Pertains to a design of electric machines where the armature, carrying the electrical input or output, rotates while the magnetic field source is stationary.