Enos Company Has Decided to Change the Estimate of the Useful

question 14

Multiple Choice

Enos Company 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 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:

Qualitative Methods

Research strategies focusing on collecting and analyzing non-numerical data (e.g., text, video) to understand concepts, thoughts, or experiences.

Interpretive

A descriptor used to indicate a perspective or research approach that seeks to understand how humans interpret or make sense of events in their lives. Interpretive studies can be understood as attempts to place oneself "in the other person’s shoes."

Experimental Science

A branch of science that relies on controlled experiments to validate hypotheses and theories.

Synchronous

Coordinated communication—for example, focus group members interacting with each other in “real time.”