Question

Which of the following should be reported as a prior period adjustment? Change in Change from Estimated Lives Unaccepted Principle of Depreciable Assets to Accepted Principle Select one: a. Yes Yes b. No No c. Yes No d. No Yes

Answer 1

Answer:

d. No Yes

Explanation:

The prior period adjustment refer to the correction in the error of the accounting that arised in the past and recognized in the earlier years of financial statement

So the items that should be reported as a prior period adjustment is the changes from non acceptance principle to the accepted principle

And does not involved the change in the predicted lives of depreciable assets

hence, the correct option is d.