A Change in the Salvage Value of an Asset Depreciated

question 64

Multiple Choice

A change in the salvage value of an asset depreciated on a straight-line basis and arising because additional information has been obtained is:

• A) an accounting change that should be reported in the period of change and future periods if the change affects both.
• B) an accounting change that should be reported by restating the financial statements of all prior periods presented.
• C) a correction of an error.
• D) not an accounting change.

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Definitions:

Time-Consuming

Activities or tasks that require a significant amount of time to complete.

Rich Data

Comprehensive, detailed, and potentially complex information that provides deep insights when analyzed.

Pilot Study

A small-scale study carried out to test the feasibility of conducting a study on a larger scale.

Feasibility

The measure of how possible or practical the implementation of a project, plan, or process is.