Changes in the depreciation rate are accounted for as a(n)
A) adjustment to current and future periods.
B) adjustment to the current period only.
C) adjustment to future periods only.
D) catch-up adjustment to prior periods.

Question

Quizplus · Accepted Answer

Changes in the depreciation rate affect the useful life and residual value of the asset, which in turn affects the amount of depreciation expense to be recognized in current and future periods. Therefore, the adjustment needs to be made to both current and future periods.

Changes in the Depreciation Rate Are Accounted for as A(n)