When Estimated Useful Life of an Asset Is Revised

question 57

Multiple Choice

When estimated useful life of an asset is revised:

• A)depreciation will continue at the current rate.
• B)depreciation expense reported in previous years would be changed retroactively.
• C)the depreciation expense in subsequent years will be changed but previous calculations will not be changed.
• D)generally accepted accounting principles have been violated.

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Definitions:

Journal Entry

Definition: A record in accounting that represents a transaction and its effect on various accounts in the double-entry bookkeeping system.

Supplies

Raw materials or tools necessary for the manufacturing or provision of services.

Services Rendered

Refers to the performance of services or completion of tasks by a company or individual in exchange for payment.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, consisting of debits and credits.