The Auditor Is Examining the Accounting Entries Made to the Accumulated

question 14

Multiple Choice

The auditor is examining the accounting entries made to the accumulated depreciation account during the year and notices a significant amount of debits to the account.Which of the following provides the most logical explanation?

• A)Large number of asset retirements
• B)Salvage values were revised downward
• C)Useful lives were revised downward
• D)Allocation of fixed overhead were revised

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Definitions:

Group's Product

The outcome, idea, or solution generated through collaborative efforts within a group.

Compensatory

Relating to actions or mechanisms aimed at counterbalancing or making up for a deficiency or loss.

Conjunctive

Relating to connections or associations between ideas, conditions, or events, emphasizing the co-occurrence and collaboration of factors.

Disjunctive

Pertaining to a relationship or situation involving a choice between mutually exclusive options.