Multiple Choice
XYZ decided to change its depreciation policy by (1) discontinuing to record depreciation on land, and (2) changing the estimated useful life on all autos used in the business from five years to four years.Choose the correct statement concerning these two changes:
A) Both are error corrections.
B) Both are changes in estimate.
C) One is an error correction, and one is a change in principle.
D) Both are changes in accounting principle.
E) One is an error correction, and one is a change in estimate.
Correct Answer:
Verified
Correct Answer:
Verified
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