CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

Details of changes in accounting principles for depreciation are found ______.
A. on the balance sheet
B. on the income statement
C. in the notes to the financial statements
Explanation: The balance sheet accounts are not affected by the cumulative effects of accounting changes for depreciation. The balances in the asset and related accumulated depreciation accounts are not affected by the change. Only the amount of the cumulative effect (net of taxes) is found on the income statement. Details are found in the notes to the financial statements.

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