Which of the following is an example of a change in accounting policy?
A) Changing from weighted average to the first-in, first-out method of inventory valuation.
B) Capitalizing a delivery truck that had previously been expensed.
C) Using 5% for the allowance for bad debts because of the increased possibility of bankruptcy by customers.
D) Using 4% for the allowance for bad debts, instead of 2% as stated in the company's procedures manual.
Correct Answer:
Verified
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