A Company That Switches from Straight-Line Amortization to Double-Declining-Balance Amortization

question 32

Multiple Choice

A company that switches from straight-line amortization to double-declining-balance amortization during an accounting period must report this change on the financial statements as:

• A) an extraordinary item
• B) income from continuing operations
• C) a prior-period adjustment
• D) a cumulative effect of a change in accounting principle

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Definitions:

Risk Factor

Anything that increases an individual's likelihood of developing a disease or injury.

Age

The length of time that a person has lived or a thing has existed, often affecting physical and mental capabilities.

Stroke

A medical condition that occurs when the blood supply to part of the brain is interrupted or reduced, leading to brain damage and potential loss of function.

Speaking Difficulty

Challenges or inability to articulate words properly, potentially caused by neurological, physical, or psychological issues.