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:

Environment

All external conditions and influences that affect the life and development of an organism or population.

Informal Groups

Social groups that form naturally within an organization, workplace, or community based on common interests or friendships, without formal structure.

Formal Group

A type of group in an organization formed by its structure, with designated tasks and roles.

Collegial Inclusiveness

The practice of ensuring participation, respect, and equal opportunities for all members within a professional community or organization.