If the Estimate of an Asset's Useful Life Is Changed

question 70

Multiple Choice

If the estimate of an asset's useful life is changed, then

• A) Depreciation expense for all past periods must be recalculated
• B) There is no change in the amount of depreciation expense recorded for future years
• C) Only the depreciation expense in the remaining years is changed
• D) None of these are true

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Definitions:

Main Purpose

The primary aim or objective intended to be achieved by a plan, action, or project.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision; it represents the benefits that could have been received but were given up to take another course of action.

Medium Of Exchange

A device or mechanism designed to assist in the buying, selling, or exchanging of products among individuals or groups.

American Dollar

The official currency of the United States, also known as the USD or US Dollar.