When There Is a Change Made to the Useful Life

question 35

Multiple Choice

When there is a change made to the useful life of an asset:

• A) it must be recognised as a change in an accounting estimate and the impact of the reported change must be disclosed in the notes to the accounts.
• B) it must be recognised as an error and all previous financial statements must be restated.
• C) it must be recognised as an error and opening retained earnings and opening balances of the asset must be restated.
• D) it is recognised as a change in an accounting estimate and the opening retained earnings and opening balances of the asset must be restated.
• E) it is ignored.

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Definitions:

Inferential Statistics

A branch of statistics that allows for making predictions or inferences about a population based on a sample of data.

Population of Interest

The specific group of individuals, about whom researchers want to draw conclusions, within the scope of a given study or analysis.

Respirations

Respirations refer to the act of breathing, wherein air is inhaled and exhaled from the lungs.

Defense Mechanisms

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and to manage emotional conflict and external stressors.