CH 20

Which of the following is a change in accounting estimate?

Change in actuarial calculations pertaining to pension plan

A change in depreciation method is treated as a

change in estimate achieved by a change in accounting principle.

When it is not possible to distinguish between a change in principle and a change in estimate, the change should be treated as a change in

estimate

A voluntary accounting principle change:

must be justified as being preferable

When it is impracticable to determine the cumulative effect of prior years of a voluntary change in accounting principle, then the new method is applied ____

prospectively

When financial statements are revised to reflect the impact of a change in accounting principle, the ______ approach is used.

retrospective

An example of a change in accounting estimate that is effected by a change in accounting principle is a change in

depreciation methods.