When the Purchase of a Material Seven-Year Depreciable Asset Is

question 92

Multiple Choice

When the purchase of a material seven-year depreciable asset is recorded by debiting an expense account, which one of the following statements is correct?

• A) It is a self-correcting error and no adjustment is necessary.
• B) The error will eventually self-correct, but the financial statements will be in error for seven years.
• C) If the company uses a rapid depreciation method, the error will self-correct quickly so no adjustment is necessary.
• D) Since it affects only the income statement, no adjustment is required.

---

Definitions:

Client-centered Therapy

A psychotherapeutic approach developed by Carl Rogers that emphasizes the therapist's empathy and the client's self-worth.

Insight

The understanding of a specific cause and effect within a specific context.

Behaviors

Observable actions or reactions of individuals, often in response to the environment or stimuli.

Gestalt Therapy

This psychotherapy approach prioritizes personal accountability and centers on what the individual is experiencing right now, the interaction between the therapist and the client, the societal and environmental backdrop of an individual's life, and the autonomous modifications individuals implement due to their general context.