You Might Be Surprised to Learn That the Default Setting

question 29

Multiple Choice

You might be surprised to learn that the default setting in a Word document is ____ lines, not single spaced.

• A) 1.05
• B) 1.10
• C) 1.15
• D) 1.20

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Definitions:

Retrospective Adjustments

Adjustments made to the financial statements of prior periods when adopting a new accounting principle, as if that principle had always been applied.

Salvage Value

The estimated residual value of an asset after its useful life is over.

Straight-Line Method

A method of calculating depreciation of an asset which spreads the cost evenly across the useful life of the asset.

Prior Period Adjustment

Adjustments made to the financial statements to correct errors or inaccuracies from previous periods.