Prior period adjustments to financial statements can result from:
A)Changes in estimates of salvage value.
B)Unacceptable accounting practices.
C)Discontinued operations.
D)Changes in tax law.
E)Changes in estimates of useful life.

Question

Quizplus · Accepted Answer

Prior period adjustments typically result from errors or unacceptable accounting practices that occurred in prior periods. Changes in estimates of useful life or salvage value, as well as changes in tax law or discontinued operations, generally do not result in prior period adjustments.

Prior Period Adjustments to Financial Statements Can Result From