Which of the Following Changes Would Not Be Accounted for Using

question 61

Multiple Choice

Which of the following changes would not be accounted for using the prospective approach?

• A)A change to LIFO from average costing for inventories.
• B)A change from the individual application of the LCM rule to aggregate approach.
• C)A change from straight-line to double-declining balance depreciation.
• D)A change from double-declining balance to straight-line depreciation.

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Definitions:

Standard Deviations

A measure of the dispersion or variation in a set of values, used to indicate volatility in financial markets.

Portfolio's Risk

The exposure to uncertainty and potential financial loss inherent in a portfolio, influenced by the volatility and correlation of its individual investments.

Portfolio Beta

A measurement of the volatility, or systematic risk, of a portfolio of assets compared to the market as a whole.

Larger Number

A numerical quantity that is greater in value when compared to another number.