A change from an accelerated depreciation method to the straight-line depreciation method should be accounted for as a
A) change in accounting estimate.
B) change in accounting estimate effected by a change in accounting principle.
C) correction of an error.
D) a prior period adjustment.

Question

Quizplus · Accepted Answer

A change from an accelerated depreciation method to the straight-line depreciation method is a change in accounting principle because it involves a change in the method of accounting for depreciation. It is not a correction of an error or a prior period adjustment. While it is an estimate, it is not a change in accounting estimate because it involves a change in accounting principle.

A Change from an Accelerated Depreciation Method to the Straight-Line