Which type of accounting change should always be accounted for in current and future periods?
A) Change in accounting principle
B) Change in reporting entity
C) Change in accounting estimate
D) Correction of an error

Question

Quizplus · Accepted Answer

Changes in accounting estimates are accounted for in the current and future periods. This is because they reflect new information or developments and do not relate to prior periods. Examples include changes in the useful lives of depreciable assets or changes in the expected obligations under a warranty.

Which Type of Accounting Change Should Always Be Accounted for in Current