Which of the Following Is an Example of a Change

question 53

Multiple Choice

Which of the following is an example of a change in accounting principle?

• A) A change in inventory costing methods.
• B) A change in the estimated useful life of a depreciable asset.
• C) A change in the actuarial life expectancies of employees under a pension plan.
• D) Consolidating a new subsidiary.

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Definitions:

Legislative Rules

Regulations established by a governing body to order society, enforceable by law.

APA

American Psychological Association, known for its writing format standard; or Administrative Procedure Act, governing the process by which federal agencies develop and issue regulations.

Interpretative Rules

Regulations or guidelines issued by administrative agencies to explain how the agency interprets and intends to apply the laws and regulations it enforces.

Binding

Creating a legal obligation or enforceability, as in contracts or agreements.