A Change in the Estimated Useful Life of Equipment Requires

question 90

Multiple Choice

A change in the estimated useful life of equipment requires

• A)a retroactive change in the amount of depreciation recognized in previous years.
• B)that no change be made to depreciation calculations, so that depreciation expense amounts are comparable over the life of the asset.
• C)that the amount of depreciation expense be changed in the current and future years.
• D)that profit for the current year be increased.

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Definitions:

Explicit Collusion

An overt agreement among firms within an industry to fix prices, limit production, or engage in other anticompetitive practices.

Tit-For-Tat

A strategy in game theory where a participant replicates an opponent's previous action, whether cooperative or competitive.

Strategy

A plan of action designed to achieve a long-term or overall aim, often used in various contexts like business, gaming, military, and personal planning.

Dominant Strategy

A dominant strategy is a course of action that yields the best payoff for a player regardless of what the other players in the game decide to do.