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:

Coefficient Of Skewness

A statistical measure that describes the asymmetry of the distribution of values in a data set around its mean.

Asymmetry

A situation where data or a distribution does not show symmetry and has one side that is different in shape or length from the other.

Coefficient Of Skewness

A measure quantifying the degree of asymmetry in the distribution of a dataset, indicating how much it deviates from a normal distribution.

Symmetry

A characteristic of shapes or patterns that exhibit proportionate similarity between parts, often mirrored around a central axis.