Once the Depreciation Expense for a Long-Lived Asset Is Calculated

question 12

Multiple Choice

Once the depreciation expense for a long-lived asset is calculated:

• A)it cannot be changed because of the cost principle.
• B)it may be revised based on new information.
• C)any changes are not recognized until the date the asset is sold.
• D)it cannot be changed due to the consistency principle.

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Definitions:

Homeostatic Mechanism

A process by which biological systems maintain stability and balance in response to external changes.

Incentive

Something that motivates or encourages an individual to take action or to perform a behavior.

External Goal

An objective or target that an individual aims to achieve, which is set outside of themselves, such as career achievements or material possessions.

Motivate Behaviour

The process of influencing or stimulating an individual to act in a certain way or pursue particular goals.