When There Is a Change in the Useful Life of an Asset

question 121

Multiple Choice

When there is a change in the useful life of an asset, depreciation must be revised if you are using

• A) straight-line depreciation.
• B) units-of-production depreciation.
• C) diminishing-balance depreciation.
• D) any of the above depreciation methods.

---

Definitions:

Power Given As Security

Refers to a legal arrangement where authority or control over assets is given to someone as a form of security for a debt or obligation.

Agency Relationship

A legal relationship established when one party (the agent) is authorized to act on behalf of another (the principal) in business transactions.

Federal Statute

A law enacted by the legislative branch of the federal government of the United States.

Agency Relationships

A legal relationship where one party, the agent, is authorized to act on behalf of another party, the principal, in business transactions.