Multiple Choice
Which of the following is true in accounting for changes in estimates?
A) Changes in estimates are considered as errors.
B) A company recognizes a change in estimate by making a retrospective adjustment to the financial statements.
C) A company accounts for changes in estimates only in the period of change, even though it affects the future periods.
D) Changes in estimates are not carried back to adjust prior years.
Correct Answer:
Verified
Correct Answer:
Verified
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