How are changes in accounting policies and accounting estimates accounted for?
$\begin{array}{ll}&\text { Accounting } & \text { Accounting } \
&\text { Policies } & \text { Estimates }\\hline
A.&\text { Retroactively } & \text { Retroactively } \
B.&\text { Retroactively } & \text { Prospectively } \
C.&\text { Prospectively } & \text { Retroactively } \
D.&\text { Prospectively } & \text { Prospectively }
\end{array}$

Question

How are changes in accounting policies and accounting estimates accounted for? 
$\begin{array}{ll}&\text { Accounting } & \text { Accounting } \
&\text { Policies } & \text { Estimates }\\hline 
A.&\text { Retroactively } & \text { Retroactively } \
B.&\text { Retroactively } & \text { Prospectively } \
C.&\text { Prospectively } & \text { Retroactively } \
D.&\text { Prospectively } & \text { Prospectively }
\end{array}$

Quizplus · Accepted Answer

Changes in accounting policies are accounted for retroactively, meaning adjustments are made to prior period financial statements as if the new policy had always been in place. Changes in accounting estimates are accounted for prospectively, meaning they are applied to the current and future periods only.

How Are Changes in Accounting Policies and Accounting Estimates Accounted