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:

Cartilage-Reinforced Walls

Structural components strengthened by cartilage, often found in certain types of anatomical structures to provide support and flexibility.

Bronchiole

A small airway that leads from a bronchus to alveoli.

Nasal Cavity

The nasal cavity is the large air-filled space behind the nose, involved in breathing and smelling, filtering, warming, and moistening the air breathed in.

Pharynx

A muscular tube at the back of the throat which connects the mouth to the esophagus and serves as a pathway for food and air.