Once the Estimated Depreciation Expense for an Asset Is Calculated

question 29

Multiple Choice

Once the estimated depreciation expense for an asset is calculated:

• A) It cannot be changed due to the historical cost principle.
• B) It may be revised based on new information.
• C) Any changes are accumulated and recognized when the asset is sold.
• D) The estimate itself cannot be changed; however, new information should be disclosed in financial statement footnotes.
• E) It cannot be changed due to the consistency principle.

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