Following U

question 60

Multiple Choice

Following U.S. Generally Accepted Accounting Principles, how is a change in accounting estimate handled?

• A)The new estimate must be used in the current and future years only.
• B)The new estimate must be used in the prior year financial statements only.
• C)The new estimate must be used in the future years only.
• D)The new estimate must be used in the prior, current and future years.

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Definitions:

Electrode

A conductor through which electric current enters or leaves a non-metallic medium, such as an electrolytic cell, arc lamp, or semiconductor.

Current Flows

The movement of electric charge carriers, such as electrons, through a conductor.

Field Winding

Coils of wire (windings) placed on the field poles of a generator or motor that create a magnetic field when electric current flows through them.

Voltage Regulator

A device that controls the amount of current that is supplied to the field winding in an AC generator.