A Change in the Estimated Useful Life of Equipment Requires

question 124

Multiple Choice

A change in the estimated useful life of equipment requires

• A)a retroactive change in the amount of periodic depreciation recognized in previous years.
• B)that no change be made in the periodic depreciation so that depreciation amounts are comparable over the life of the asset.
• C)that the amount of periodic depreciation be changed in the current year and in future years.
• D)that income for the current year be increased.

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Definitions:

Shut-Down

Shut-down refers to the temporary or permanent cessation of operations, usually in the context of businesses or machinery.

Relationship-Specific Investments

See Specific investments.

Organizational

Pertaining to the structure and function of an organization, including its processes, policies, and personnel management.

Contractual Forms

denotes the various arrangements and agreements under which businesses and individuals engage in transactions, outlining the terms and conditions of their exchanges.