A Change in the Estimated Useful Life of a Building

question 64

Multiple Choice

A change in the estimated useful life of a building

• A) is not allowed by generally accepted accounting principles.
• B) affects the depreciation on the building beginning with the year of the change.
• C) must be handled as a retroactive adjustment to all accounts affected,back to the year of the acquisition of the building.
• D) creates a new account to be recognized on the income statement reflecting the difference in net income up to the beginning of the year of the change.

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Definitions:

Dilemma Of Honesty

The challenge individuals face when deciding whether to be truthful, potentially causing harm or conflict, or to withhold truth to maintain harmony.

Preparation

The act of making ready or being made ready for use or consideration, involving planning and arrangement activities.

Communicating With Coalition

The act of sharing information, negotiating strategies, and aligning objectives among members of a coalition or alliance.

Perceptions Of Fairness

Individual beliefs or attitudes regarding the equity or justice of actions, decisions, or distributions.