When Estimated Useful Life of an Asset Is Revised

question 57

Multiple Choice

When estimated useful life of an asset is revised:

• A)depreciation will continue at the current rate.
• B)depreciation expense reported in previous years would be changed retroactively.
• C)the depreciation expense in subsequent years will be changed but previous calculations will not be changed.
• D)generally accepted accounting principles have been violated.

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Definitions:

Cheese

A dairy product derived from milk and produced in a wide range of flavors, textures, and forms by coagulating the milk protein casein.

Opportunity Cost

The sacrifice of prospective advantages from other possibilities when one option is selected.

International Trade

The exchange of goods and services between countries, which can involve exports, imports, and the trading of resources.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade possibilities.