Which of the Following Statements Is False

question 129

Multiple Choice

Which of the following statements is false?

• A) A company can change the method used for depreciating assets if the change can be justified because it provides a better measure of the company's profit.
• B) A change in estimate requires the company to recalculate and restate all the prior years' estimates of depreciation and adjust the impact on the statement of financial position and income statement.
• C) A change in estimate is frequently necessary because the estimates of useful lives or residual values may change over time because conditions change.
• D) Either a change in estimate or a change in method can only be justified on the basis it provides a better measure of profit.

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Definitions:

Difference Threshold

The smallest detectable difference between two stimuli that a person is able to sense, also known as the just noticeable difference (JND).

Minimum Threshold

The lowest intensity at which a stimulus can be detected 50% of the time.

Light Entering

Refers to the process of light passing into the eye, pivotal for the process of vision.

Pupil

The opening in the center of the iris of the eye, which regulates the amount of light reaching the retina.