Question

Ceylan Company decided to change from the double-declining balance method to the straight-line method. Ceylan should handle this as a

		prior period adjustment.
		change in accounting principle.
		change in accounting estimate.
		correction of an error.

Answer 1

Your required answer is option C i.e. Chanve in accounting estimate.

Explanation:

Since depreciation is something that depends upon estimate of person and it depends upon judgement of and therefore change in depreciation is considered as change in accounting estimate. whereas change in accounting principle means change in generally accepted accounting principle.

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