Which of the Following Should Be Reported as a Change

question 130

Multiple Choice

Which of the following should be reported as a change in accounting estimate?

• A) change in the reported beginning inventory amount due to a discovery of a bookkeeping error
• B) increase in bad debt rate applied to net sales
• C) change from completed-contract method to the percentage-of-completion for revenue recognition
• D) change made to comply with a new FASB pronouncement

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Definitions:

Genetically Influenced

Traits or characteristics that are affected by genes inherited from one's parents, including physical attributes and susceptibility to certain diseases.

Motivation

An inferred process within a person or animal that causes movement either toward a goal or away from an unpleasant situation.

Unpleasant Situation

A scenario or event that is disagreeable, uncomfortable, or causes distress to an individual.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise.