A Change in the Estimated Useful Life of Equipment Requires

question 71

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:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, which integrates information and coordinates all bodily functions.

Speed Up

The act of increasing the rate at which something occurs or is performed.

Tranquilizer

A type of medication used to reduce tension or anxiety, often affecting the central nervous system to induce relaxation.

Reduced Anxiety

A decrease in the feelings of nervousness, fear, or apprehension often associated with anticipation of a threat.