Which of the Following Accounting Changes Requires an Emphasis-Of-Matter Paragraph

question 40

Multiple Choice

Which of the following accounting changes requires an emphasis-of-matter paragraph regarding consistency in the auditors' report?

• A) A change in the estimated useful lives of a class of fixed assets.
• B) A write-off of a patent because future benefits do not appear to exist.
• C) A change from the straight-line method of depreciation to an accelerated method for a class of fixed assets.
• D) A change in calculating bad debt expense from one percent to two percent of credit sales.

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Definitions:

Hidden Observer

A concept in hypnosis suggesting that a part of the mind remains aware and observes when the rest of the mind is under hypnosis.

Hilgard

Hilgard refers to Ernest Hilgard, a psychologist known for his research on hypnosis, especially his theory of a "hidden observer" in the hypnotic state.

Dream Differences

The variation in dream content, frequency, and significance among different individuals, often influenced by cultural, psychological, and personal factors.

Strangers

Individuals who are unknown or unfamiliar to someone.