Which of the Following Changes Should Be Accounted for Using

question 49

Multiple Choice

Which of the following changes should be accounted for using the retrospective approach?

• A)A change in the estimated useful life of a depreciable asset.
• B)A change from straight-line to double-declining-balance depreciation.
• C)A change from percentage-of-completion to the completed contract method.
• D)A change to LIFO from FIFO inventory costing.

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Definitions:

Colostrum

A yellowish substance containing nutrients and antibodies that is secreted by the breasts 2–3 days prior to actual milk production.

Lactation

The production of milk in the breasts (mammary glands).

Tangible Attributes

The physical characteristics of a product that can be sensed, such as its size, shape, weight, and texture.

Intangible Attributes

Characteristics of a product or service that cannot be physically touched or measured, such as brand reputation or customer service quality.