Multiple choice

Change in the method of depreciation is change in

  1. accounting estimate

  2. accounting policy

  3. measurement discipline

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Depreciation method (straight line, written down value, units of production) is an accounting policy - the chosen approach for systematic allocation. Accounting estimate involves judgement like useful life or residual value. Changing from SLM to WDV method is policy change. Changing useful life estimate is estimate change. Measurement discipline is not standard terminology.

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