When a Change in Depreciation Method Occurs

question 40

Multiple Choice

When a change in depreciation method occurs

• A) prior years' financial statements should be changed to reflect the newly adopted method.
• B) the change should be reported in current and future years.
• C) the cumulative effect of the change should be reflected on the income statement as of the beginning of the next year.
• D) the cumulative effect of the change in accounting principle should be classified as an extraordinary item on the income statement.

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