Which of the Following Statements Is Correct

question 50

Multiple Choice

Which of the following statements is correct?

• A) A change in estimated useful life for a building should cause a correction to prior years' retained earnings.
• B) A change in method of accounting for depreciation should cause an adjustment to current year's depreciation expense and a cumulative effect for the effect of the change on prior year's earnings.
• C) An error affecting prior year's depreciation is treated as a change in estimate.
• D) A cumulative effect will never be accompanied by a related tax effect

---

Definitions:

Ownership of Property

The legal right or interest that an individual or entity has in a definable piece of land, buildings, or personal property.

Voting Requirements

Regulations determining who is eligible to vote, including criteria such as age, citizenship, residency, and sometimes previous criminal convictions.

Twelfth Amendment

An amendment to the United States Constitution, requiring separate Electoral College votes for President and Vice President.

National Roads

Major highways constructed and maintained by a national government, often significant for economic development and national security.