Squid Roe,Inc

question 72

Multiple Choice

Squid Roe,Inc.'s $48,000 sushi bar was originally expected to be used for eight years with no residual value.Depreciation on the bar was $6,000 per year for the past two years.In the third year,management changed the estimated life of the bar to be a total of only six years instead of eight.What should Squid Roe do?

• A)Go back and revise all previous years' depreciation expense to be $8,000 per year.
• B)Revise the depreciation expense to be $9,000 for years three through six.
• C)Continue to depreciate the bar at $6,000 per year and then show a loss when it removes the bar at the end of year six.
• D)Disclose the new information in the notes to the financial statements,but do not change anything else.

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Definitions:

Nonverbal Cues

Forms of communication without words, such as facial expressions, body language, and gestures, that convey messages or emotions.

Individual Gestures

Non-verbal communications or actions made by a person to convey messages or express emotions.

Nonverbal Cues

are forms of non-spoken communication, such as gestures, facial expressions, and body language, which convey messages or emotions.

Existence of Adapters

The presence of intermediaries or devices that enable the connection or compatibility between different systems or components.