Question

Which of the following is not considered a change in accounting policies? Select one: a. Converting...

Which of the following is not considered a change in accounting policies?

Select one:

a. Converting from double-declining balance to straight-line for PPE depreciation

b. All choices are correct

c. Overstating the ending inventory

d. Incorrect classification of an assets

Homework Answers

Answer #1

Answer: b. All choices are correct

Note: Converting from double declining balance to straight line for PPE depreciation, Overstating the ending inventory, Incorrect classification of an assets are not change in accounting policies.

Accounting policies are specific principles and procedures implemented by company's management team that are used to prepare it's financial statements. These include any accounting methods, measurement systems and procedures for presenting disclosures.

Change in accounting policies results in the financial statements providing reliable and more relevant information about the effects of transactions, other event or conditions on the entity's financial position, financial performance and cash flows.

So option (a),(c),(d) are not considered as change in accounting policies.

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