Accounting for a Change in the Estimated Service Life of Equipment

question 46

Multiple Choice

Accounting for a change in the estimated service life of equipment:

• A) Is handled prospectively.
• B) Requires retroactive restatement of prior year's financial statements.
• C) Requires a prior period adjustment.
• D) Is handled currently as a change in accounting principle.

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Definitions:

Festinger and Carlsmith

Researchers known for their 1959 cognitive dissonance experiment, which investigated the effects of forced compliance behavior on changing attitudes.

Attitude Change

The process in which an individual's feelings, beliefs, or behavior towards a particular entity or topic shifts over time.

Paid for Lying

The act of receiving compensation or reward in exchange for deceit or delivering false statements.

Operant Conditioning

Operant Conditioning refers to a method of learning in which the likelihood of a behavior's occurrence is altered through rewards or penalties.