A company has decided to change its depreciation method to better reflect the pattern of use of its equipment. Which of the following correctly reflects what this change represents and how it should be applied? A It is a change of accounting policy and must be applied prospectively B It is a change of accounting policy and must be applied retrospectively C It is a change of accounting estimate and must be applied retrospectively D It is a change of accounting estimate and must be applied prospectively
A company has decided to change its depreciation method to better reflect the pattern of use of its equipment. Which of the following correctly reflects what this change represents and how it should be applied? A It is a change of accounting policy and must be applied prospectively B It is a change of accounting policy and must be applied retrospectively C It is a change of accounting estimate and must be applied retrospectively D It is a change of accounting estimate and must be applied prospectively
Chapter2: Audits Of High-risk Accounts
Section2.2: Golden Bear Golf, Inc.
Problem 5Q
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) A company has decided to change its
its equipment.
Which of the following correctly reflects what this change represents and how it should be
applied?
A It is a change of accounting policy and must be applied prospectively
B It is a change of accounting policy and must be applied retrospectively
C It is a change of accounting estimate and must be applied retrospectively
D It is a change of accounting estimate and must be applied prospectively
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