Fraser Ltd

question 67

Multiple Choice

Fraser 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:

Proposition

A statement expressing an idea that can be true or false.

Controversial

Something that causes disagreement or debate, often because it challenges established views.

True or False

A statement of logical assessment that evaluates to either correct or incorrect.

Reasoning

The mental process of using logic to identify connections, draw conclusions, solve problems, or make decisions.