Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Change in depreciation method
A)Cost allocation for an intangible asset.
B)Cost allocation for a natural resource.
C)Cost less residual value.
D)Amount of use expected from plant and equipment asset.
E)Treated prospectively like a change in estimate

Question

Quizplus · Accepted Answer

A change in depreciation method is treated as a change in accounting estimate and is therefore applied prospectively, meaning it affects the depreciation calculation from the point of the change forward and does not alter past financial statements.

Listed Below Are Five Terms Followed by a List of Phrases