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When a Company Makes a Change in an Estimate That

Question 1

Multiple Choice
When a company makes a change in an estimate that it has used in its financial statements,it should account for the change by:
A) retroactively restating all prior financial statements
B) treat the change as a cumulative effect change in accounting estimate
C) spread the effect of the change over the current and future periods
D) companies are not allowed to make changes to estimates

When a company makes a change in an estimate that it has used in its financial statements,it should account for the change by:


A) retroactively restating all prior financial statements
B) treat the change as a cumulative effect change in accounting estimate
C) spread the effect of the change over the current and future periods
D) companies are not allowed to make changes to estimates

Correct Answer:

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