Grant Company Has Decided to Change the Estimate of the Useful

question 105

Multiple Choice

Grant 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:

Elderly

Pertaining to individuals in their later years of life, often considered to be those aged 65 and above, marked by various cognitive and physical changes.

Antipsychotic Medications

Drugs used to manage psychosis, including symptoms such as delusions and hallucinations, often found in schizophrenia and bipolar disorder.

Psychotic Symptoms

Manifestations of psychosis, including hallucinations (seeing or hearing things that aren’t there) and delusions (false beliefs), often indicating a severe mental disorder.

Rate

A measure used to quantify the frequency, occurrence, or speed of an event or condition.