Which of the Accounting Changes Listed Below Is More Associated

question 14

Multiple Choice

Which of the accounting changes listed below is more associated with financial statements prepared in accordance with U.S. GAAP than with International Financial Reporting Standards?

• A)Change in reporting entity.
• B)Change to the LIFO method from the FIFO method.
• C)Change in accounting estimate.
• D)Change in depreciation methods.

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Definitions:

Annuity Due

A type of annuity in which payments are made at the beginning of each period, rather than at the end.

Present Value

The current worth of a future sum of money or stream of cash flows, given a particular rate of discount.

Sinking Fund

A fund established by a government or corporation for the purpose of reducing debt by repurchasing bonds or shares.

Maturity

The date on which a debt instrument (such as a bond) is due to be repaid in full.