The Auditor Is Examining the Accounting Entries Made to the Accumulated

question 126

Multiple Choice

The auditor is examining the accounting entries made to the accumulated depreciation account during the year and notices a significant number and amounts 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 was revised

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