Post Utme Bells University 2021 Accounting Question 27

Practice objective / multiple choice question 27 from the 2021 Post Utme Bells University Accounting examination.

Post Utme Bells University 2021 Accounting Objective / Multiple Choice
Question 27 POST_UTME_BELLS_UNIVERSITY • 2021 • ACCOUNTING • objective

A company's accounting policy requires that depreciation be calculated using the straight-line method. However, the company's management wants to switch to the declining balance method. What is the accounting treatment for the change in depreciation method?

Answer Options

Correct Answer A. The change in depreciation method is accounted for as a change in accounting estimate.
B. The change in depreciation method is accounted for as a change in accounting policy.
C. The change in depreciation method is accounted for as a correction of an error.
D. The change in depreciation method is not accounted for.
Correct Answer
A
Correct Option:
The change in depreciation method is accounted for as a change in accounting estimate.

About This Question

This is Post Utme Bells University 2021 Accounting Question 27. It is one of the objective questions from the 2021 Post Utme Bells University Accounting examination.

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