A company changes from an accounting principle that is not generally accepted to one that is generally accepted.The effect of the change should be reported as a
A) change in accounting principle.
B) change in accounting estimate
C) correction of an error.
D) change of accounting estimate effected by a change in accounting principle.

Question

Quizplus · Accepted Answer

The change from an accounting principle that is not generally accepted to one that is generally accepted is considered a correction of an error, as the previous principle was incorrect.

A Company Changes from an Accounting Principle That Is Not