When a Material Seven-Year Depreciable Asset Is Recorded as an Expense,which

question 107

Multiple Choice

When a material seven-year depreciable asset is recorded as an expense,which one of the following statements is correct?

• A)It is a self-correcting error and no adjustment is necessary.
• B)The error will eventually self-correct,but the financial statements will be in error for seven years.
• C)If the company uses a rapid depreciation method,the error will self-correct quickly so no adjustment is necessary.
• D)Since it affects only the income statement,no adjustment is required.