Which statement concerning accounting for accounting changes and errors is false?
A) An error is accounted for retrospectively.
B) A change in accounting principle is accounted for prospectively.
C) A change in accounting principle may be accounted for retrospectively.
D) A change in accounting estimate is accounted for prospectively.

Question

Quizplus · Accepted Answer

A change in accounting principle is generally accounted for retrospectively, not prospectively. This means that, when a company changes its accounting principle, it must apply the new principle to all periods presented in the financial statements as if that principle had always been used.

Which Statement Concerning Accounting for Accounting Changes and Errors Is