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.
-Prospective approach
A)Involves consolidated financial statements.
B)The approach used for changes in depreciation methods.
C)Accounting changes always handled retrospectively.
D)Required for all material accounting changes and error corrections.
E)Most are handled under the retrospective approach.

Question

Quizplus · Accepted Answer

The prospective approach is specifically used for changes in accounting estimates, such as depreciation methods, where the change is applied to current and future transactions, not past ones.

Listed Below Are Five Terms Followed by a List of Phrases