A Change from an Accelerated Depreciation Method to the Straight-Line

question 52

Multiple Choice

A change from an accelerated depreciation method to the straight-line depreciation method should be accounted for as a

• A) change in accounting estimate.
• B) change in accounting estimate effected by a change in accounting principle.
• C) correction of an error.
• D) a prior period adjustment.

Grasp the consequences of failing to meet consumer preferences in a competitive market.

Understand the concept of price discrimination and its impact on different consumer groups.

Identify the conditions under which firms can gain from price discrimination.

Recognize the characteristics of competitive price-searcher markets and their differences from price-taker markets.

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Definitions:

Gift

Something given voluntarily without payment in return, often as a symbol of affection or goodwill.

Contract

An agreement between multiple parties that is recognized and can be enforced by the legal system.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Promisee

The party in a contract who is to receive the benefit or performance specified in the agreement.