Which of the Following Explanations Most Likely Would Satisfy an Auditor

question 70

Multiple Choice

Which of the following explanations most likely would satisfy an auditor who questions management about significant debits to the accumulated depreciation accounts?

• A) The estimated remaining useful lives of plant assets were revised upward.
• B) Plant assets were retired during the year.
• C) The prior year's depreciation expense was erroneously understated.
• D) Overhead allocations were revised at year-end.

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Definitions:

Transformation

Transformation refers to the genetic alteration of a cell resulting from the direct uptake and incorporation of exogenous genetic material.

Acid Chloride

A compound derived from an organic acid by replacing its hydroxyl group with a chlorine atom, used in various organic syntheses.

Aldehyde

An organic compound characterized by the presence of a carbonyl group (C=O) bonded to at least one hydrogen atom.

Organic Product

Materials or substances originating from biological sources, especially those made up of carbon-based compounds.