Asked by
Colin Lynch
on Nov 14, 2024
Verified
When a change in estimate is made, there is no correction of previously recorded depreciation expense.
Change In Estimate
An adjustment made to the accounting records to reflect new information or subsequent changes in judgments regarding financial statement estimates.
Depreciation Expense
The systematic allocation of the depreciable amount of an asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.
Correction
A process of adjusting or rectifying errors in financial statements or any documents.
- Grasp the accounting procedure for changes in depreciation estimate and its impact on financial statements.
Verified Answer
KW
Learning Objectives
- Grasp the accounting procedure for changes in depreciation estimate and its impact on financial statements.