A Change in the Salvage Value of an Asset Depreciated

question 7

Multiple Choice

A change in the salvage value of an asset depreciated on a straight-line basis and arising because additional information has been obtained is

• A) An accounting change that should be reported in the period of change and future periods of change if the change affects both
• B) An accounting change that should be reported by restating the financial statements of all prior periods presented
• C) A correction of an error
• D) Not an accounting change

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Definitions:

Tort

An act of civil misconduct that leads to damage or injury for the victim, thereby creating legal responsibility for the individual who performed the act.

Battery

Battery is a criminal offense involving the unauthorized or unlawful physical contact with another person, with or without the intent to cause harm.

Assault

An act that threatens or inflicts physical harm or intimidation on another person.

Misrepresentation

A false statement of fact made by one party to another party, which has the effect of inducing that party into the contract.