Changes in accounting estimates are:
A)Considered accounting errors.
B)Reported as prior period adjustments.
C)Accounted for with a cumulative "catch-up" adjustment.
D)Statement of cash flow items.
E)Accounted for in current and future periods.

Question

Quizplus · Accepted Answer

Changes in accounting estimates are not considered accounting errors and are not reported as prior period adjustments. They are accounted for with a cumulative adjustment in the current period and are also reflected in future periods. They are not reported on the statement of cash flows.

Changes in Accounting Estimates Are