What characterizes a change in accounting estimate versus a change in principle? a) It must be approved by shareholders b) It requires retroactive application to all prior periods c) It affects future periods only and doesn't require restatement d) It only applies to depreciation methods

Which of the following statement is correct regarding accounting changes that result in financial statements that are effect the statements of a different reporting entity? a.The financial statements of all prior periods presented are adjusted retrospectively. b.No restatements or adjustments are required if the changes involve the cost r equity methods of accounting for investments. c.Cumulative-effect adjustments should be reported as a separate item in the financial statements pertaining to the year of the change. d.No restatements or adjustments are required if the changes involve the cost or equity methods of accounting for investments.

When a company changes from the straight-line method of depreciation for previously recorded assets to the double declining balance method, which of the following should be reported?Cumulative effects of change in accounting principle, Pro forma effects of retroactive applicationa. No Nob. No Yesc. Yes Yesd. Yes No

Which of the following sets of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles? Group of answer choices Amount of loss is reasonably estimable and event occurs infrequently. Amount of loss is reasonably estimable and occurrence of event is probable. Event is unusual in nature and occurrence of event is probable. Event is unusual in nature and event occurs infrequently.

A change in accounting estimate is An adjustment of the carrying amount of an asset or liability, or related expense, resulting from reassessing the expected future benefits and obligations associated with that asset or liability. A change in the specific principles, bases, conventions, rules and practices applied b an entity in preparing and presenting financial statements. Omission from, and misstatement in an entity's financial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that was available and could reasonably be expected to have been obtained and taken into account in preparing those statements. All of the above.

Which of the following would NOT be reflected in the income statement? Group of answer choices A.Correction of an error in previously issued financial statements B.Loss on disposal of a segment of a business C.Cumulative effect of a change in depreciation methods D.An extraordinary item

Which of the following statements about a change in accounting estimate is not true?   A. A change in accounting estimate can only be made when it is required to comply with an accounting standard or interpretation.   B. Changes in accounting estimates result from new information or new developments.   C. The effects of a change in accounting estimate should be applied prospectively.   D. A change in estimate is an adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset.

Kindly provide the correct answers for the following items.

Explain is a change in depreciation method a change in accounting principle, or is it a change in estimate?

What is the purpose of recognizing depreciation on the financial statements?  Is it designed to report PPE at fair value on the balance sheet?