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Accountants at Rextech Are Seriously Considering a Change in the Methods

Question 285

Multiple Choice

Accountants at Rextech are seriously considering a change in the methods they use to depreciate equipment and value inventory.If they do so,the changes they make:


A) will have no impact on the "bottom line" of the firm.
B) will influence the cost of goods sold,but will have no impact on the firm's operating expenses.
C) must be clearly explained to any readers of Rextech's financial statements.
D) must be balanced by offsetting changes in the treatment of intangible assets.

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