Mandeep Ltd

question 14

Multiple Choice

Mandeep Ltd. has decided to change the estimate of the useful life of an asset that has been in service for two 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 Canada Revenue Agency.
• B) Both the current and future years will be affected by the revision.
• C) Retroactive changes must be made to correct previously recorded depreciation.
• D) Only future years will be affected by the revision.

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Definitions:

Depth Perception

The visual ability to perceive the world in three dimensions and to understand spatial relationships.

Presbyopia

A natural age-related condition where the eye's lens loses its ability to focus properly, making it difficult to see objects up close.

Lens

A lens is a piece of transparent material with curved surfaces, typically used in glasses and optical devices to focus or disperse light rays and form images.

Tinnitus

A condition characterized by hearing noises not caused by an external source, often described as ringing, buzzing, or humming in the ears.