If a company changes the useful life of its assets from 10 years to 12 years, this will be recorded as:
A)a nonrecurring gain.
B)an extraordinary item.
C)a change in accounting principle.
D)None of the above

Question

Quizplus · Accepted Answer

Changing the useful life of an asset is considered a change in accounting estimate, not a change in accounting principle or an extraordinary item.

If a Company Changes the Useful Life of Its Assets