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:

Test Statistic

A numerical value employed in statistical hypothesis testing for deciding if the null hypothesis should be discarded.

Confidence Interval

A range of values, determined from sample statistics, that is believed to contain the true population parameter with a certain probability.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it marks the threshold for statistical significance.

T-Distribution

A probability distribution used in statistical analysis which is appropriate for estimating population parameters for small sample sizes or unknown variances.