Which of the Following Accounting Changes Should Not Be Accounted

question 33

Multiple Choice

Which of the following accounting changes should not be accounted for prospectively?

• A) The correction of an error.
• B) A change from declining balance to straight-line depreciation.
• C) A change from straight-line to declining balance depreciation.
• D) A change in the expected salvage value of a depreciable asset.

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Definitions:

Independent Variable

An independent variable is a condition or factor that can be manipulated in an experiment to determine its effect on a dependent variable, establishing cause-and-effect relationships.

Break-Even Analysis

A financial calculation to determine the volume of production or sales at which total revenues will equal total costs.

Unit Variable Expense

Costs that vary directly with the production of one unit of a product or service.

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain and all fixed costs are covered.