Which of the following typically is NOT associated with a change in estimate for accounting purposes?
A) Return on pension fund
B) Useful life of a depreciable asset
C) Bad debt expense
D) Change in calculating depreciation from straight-line to sum-of-the-years'-digit

Question

Quizplus · Accepted Answer

Changing the method of depreciation, such as from straight-line to sum-of-the-years'-digits, is considered a change in accounting principle, not a change in estimate. Changes in estimates refer to adjustments of the carrying amount of an asset or liability, or the amount of the periodic consumption of an asset, that result from new information or new developments and, accordingly, are not correction of errors.

Which of the Following Typically Is NOT Associated with a Change