When a Change in Depreciation Method Occurs

question 37

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 a discontinued operations on the income statement.