A Change in the Salvage Value of a Depreciable Asset

question 127

Multiple Choice

A change in the salvage value of a depreciable asset should be accounted for as a:

• A) Change in accounting entity.
• B) Correction of an accounting error.
• C) Change in accounting estimate.
• D) Change in accounting principle.

Understand the differences between policies in the private and public sectors.

Comprehend the historical development and impact of significant health policies and acts.

Recognize the sources of authority for local and federal government actions.

Identify federal laws that impact individual health insurance benefits.

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Definitions:

Management By Exception

A management system in which standards are set for various activities, with actual results compared to these standards. Significant deviations from standards are flagged as exceptions.

Actual

The real, measured or observed value of a quantity or cost, as opposed to estimated or budgeted figures.

Budget

A quantitative plan for acquiring and using resources over a specified time period.

Static Budget

A budget prepared for a single level of activity, without changes for variations in sales or production volumes, often used for fixed expenses.