Changes in accounting estimates:
A) are not allowed under GAAP.
B) are a prior period adjustment
C) are reported for the current and future periods on the new basis.
D) require prior financial statements to be restated.

Question

Quizplus · Accepted Answer

Changes in accounting estimates are changes in estimates that result from new information or changed circumstances and are not the result of new information. GAAP allows changes in accounting estimates to be reported prospectively in the current and future periods on the new basis. They do not require prior financial statements to be restated, and they are not considered a prior period adjustment.

Changes in Accounting Estimates