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

question 21

Multiple Choice

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

• A) change in an accounting estimate.
• B) change in an accounting principle.
• C) prior period adjustment.
• D) accounting error.

---

Definitions:

Maturity

The time at which payment to a bondholder is due from the issuer, according to the bond's terms.

Investment-Quality

A designation given to securities or investments considered to offer lower risk and stable returns.

Bond Ratings

A system used to evaluate the credit quality and risk level of a bond by assigning grades such as AAA, AA, etc.

Standard & Poor's

A US financial services company known for its stock market indices like the S&P 500, as well as providing credit ratings for borrowers.