Enos Company Has Decided to Change the Estimate of the Useful

question 228

Multiple Choice

Enos Company has decided to change the estimate of the useful life of an asset that has been in service for 2 years. Which of the following statements describes the proper way to revise a useful life estimate?

• A) Revisions in useful life are permitted if approved by the IRS.
• B) Retroactive changes must be made to correct previously recorded depreciation.
• C) Only future years will be affected by the revision.
• D) Both current and future years will be affected by the revision.

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Definitions:

Quotas

Limits or targets, usually set by governments, on the quantity or value of goods that can be imported or exported.

Dumping

The act of a country or business selling products at less than what it costs to produce them.

International Business

The buying, selling, and trading of goods and services across national boundaries.