A Change in the Estimated Useful Life of Equipment Requires

question 120

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 net income for the current year be increased.

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Definitions:

Columns

Vertical blocks in a page layout or table used to organize text, images, or data logically.

Rows

In a table or database, a horizontal line of cells that together represent all the information related to a single item or entity.

Column Chart

A graphical representation of data using vertical bars to compare different categories or values across a single axis.

Trendlines

Graphical representations that display the trend or direction of data in charts, often used in statistical or financial analysis.