A Company That Changes from the Declining-Balance Method of Depreciation

question 14

Multiple Choice

A company that changes from the declining-balance method of depreciation for previously recorded assets to the straight-line method should report the change as a(n)

• A) change in accounting principle.
• B) change in accounting estimate.
• C) prior period adjustment.
• D) extraordinary item.

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Definitions:

Retina

A layer at the back of the eyeball containing cells that are sensitive to light and trigger nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.

Sensation

The process by which sensory receptors and the nervous system receive stimuli from the environment, such as touch, taste, smell, sound, and sight.

Perception

The process by which sensory information is organized, interpreted, and consciously experienced.

20,000 Hz

The frequency of soundwaves that typically represents the upper limit of human hearing.