When There Is a Change Made to the Useful Life

question 35

Multiple Choice

When there is a change made to the useful life of an asset:

• A) it must be recognised as a change in an accounting estimate and the impact of the reported change must be disclosed in the notes to the accounts.
• B) it must be recognised as an error and all previous financial statements must be restated.
• C) it must be recognised as an error and opening retained earnings and opening balances of the asset must be restated.
• D) it is recognised as a change in an accounting estimate and the opening retained earnings and opening balances of the asset must be restated.
• E) it is ignored.

Understand the concept of elasticity of resource demand and its calculation.

Grasp the relationship between the elasticity of product and labor demand in different industries.

Comprehend the impacts of wage changes on labor demand and firm costs.

Understand the role of resource pricing and its significance in economics.

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Definitions:

Without Replacement

A sampling method where once an item is selected, it is not put back into the population for potential reselection.

Consecutive Red Cards

In card games or sports like soccer, instances where red cards are issued in sequential order, either to players or as drawn cards from a deck.

Black Card

Often refers to a high-tier, exclusive credit card that offers extensive benefits and is typically invitation-only.

Record

To capture and store information for future use or to denote an all-time high or low measurement in a specific context.