A change in the unit depletion rate would be accounted for as a
A) correction of an accounting error.
B) change in accounting principle.
C) change in accounting estimate.
D) change in accounting estimate effected through a change in accounting principle.

Question

Quizplus · Accepted Answer

A change in unit depletion rate is a change in accounting estimate, as it is an adjustment in the estimated amount of natural resources used up during a period. It is not a correction of an accounting error or a change in accounting principle (which would involve a different method of accounting, such as switching from the FIFO method to the LIFO method).

A Change in the Unit Depletion Rate Would Be Accounted