Changes in accounting estimates are:A) Considered accounting errors.B) Reported as prior period adjustments.C) Accounted for with a cumulative catch-up adjustment.D) Immaterial items.E) Accounted for in current and future periods.

Question

Changes in accounting estimates are:A)  Considered accounting errors.B)  Reported as prior period adjustments.C)  Accounted for with a cumulative catch-up adjustment.D)  Immaterial items.E)  Accounted for in current and future periods.

Life Long Student · Accepted Answer

Final Answer : E, Explanation :  Changes in accounting estimates are not considered accounting errors, nor are they reported as prior period adjustments. Instead, they are accounted for in the current period and future periods through a cumulative catch-up adjustment to the financial statements. As such, they are not necessarily immaterial items, as some changes in estimates may have a significant impact on the financial statements.

Changes in accounting estimates are:

A) Considered accounting errors.
B) Reported as prior period adjustments.
C) Accounted for with a cumulative "catch-up" adjustment.
D) Immaterial items.
E) Accounted for in current and future periods.

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Learning Objectives

Related questions

Changes in accounting estimates are:A) Considered accounting errors.B) Reported as prior period adjustments.C) Accounted for with a cumulative "catch-up" adjustment.D) Immaterial items.E) Accounted for in current and future periods.

Definitions

Learning Objectives

Learning Objectives

Related questions

Changes in accounting estimates are:

A) Considered accounting errors.
B) Reported as prior period adjustments.
C) Accounted for with a cumulative "catch-up" adjustment.
D) Immaterial items.
E) Accounted for in current and future periods.