If There Are Difficulties in Distinguishing Between a Change in an Accounting

question 30

True/False

If there are difficulties in distinguishing between a change in an accounting estimate and a change in an accounting policy, the change must be treated as a change in an accounting estimate.

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Definitions:

Contra Account

An account that is used to offset another account on the balance sheet, such as accumulated depreciation for fixed assets.

Legal Liability

The responsibility imposed by law to compensate for or rectify any harm, loss, or damage one's actions or decisions have caused to others.

Sales Taxes

These are taxes imposed by governments on the sale of goods and services.

Sick Pay

Compensation paid by employers to employees during periods when they are unable to work due to illness.