ExplanationChoice A is correct. Computing depreciation principally by the straightlinemethod is a GAAP method ofdepreciation that should be described in the summary of significant accounting policies.Choice B is incorrect. Disclosing the sale of a component of a business is required (and is covered inthe lecture on discontinued operations in the F1 class) but is not a significant accounting policy.Choice C is incorrect. Disclosing sales of segments is required, but is not a significant accountingpolicy.Choice D is incorrect. Estimates of future common share dividends are not appropriate disclosures forthe financial statements. They might be appropriate for the president's letter to shareholders.