Which will never result in an adjustment of a prior period's financial statements?
A)a material error
B)a change in accounting principle
C)a change in the estimated life of a depreciable asset
D)the realization of income tax benefits of preacquisition operating loss carryforward of a purchased subsidiary

Question

Quizplus · Accepted Answer

A change in the estimated life of a depreciable asset is accounted for prospectively and does not require adjustments to prior periods' financial statements. It affects depreciation calculations in the current and future periods only.

Which Will Never Result in an Adjustment of a Prior