Elder Corporation decided to change its depreciation policy by (1) changing from double-declining-balance depreciation, and (2) changing the estimated useful life on all automobiles used in the business from five years to four years. Which of the following is correct concerning these two changes?
a. Both are changes in accounting principle.
b. Both are changes in accounting estimate.
c. One is an error correction, and one is change in accounting principle.
d. One is a change in estimate effected through a change in accounting principle, and one is a change in estimate.
D
You might also like to view...
Which is not a privacy or security issue for e-commerce?
A) fears of identity theft B) worries a company will sell personal information C) charging higher prices for some customers but not others D) being defrauded
What are the benefits of RFID technology over traditional bar codes?
What will be an ideal response?
What is meant by the term global economy? How will it positively and negatively affect the United States?
What will be an ideal response?
According to the text, a stakeholder is an end user of a system
Indicate whether the statement is true or false