Garner,Inc

question 99

True/False

Garner,Inc.determined that it had incorrectly estimated both the estimated life and the estimated residual value of equipment that it purchased two years ago.When Garner accounts for the change in accounting estimates,it must depreciate the remaining book value of the asset over the current and future accounting periods.

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Definitions:

Personal Use

The use of a company's assets or services by an individual for their private needs, not for business purposes.

Income Ratio

A financial metric used to assess a company's ability to generate income relative to revenue, sales, assets, or equity.

Capital Balances

The amount of money or value of assets contributed by the owners or partners in a company, not including earnings or profits.

Service

An intangible product offered to customers that does not result in ownership of anything.