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.

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Definitions:

Shear Loading

A condition where a material or structure is subjected to forces that cause sliding failure along a parallel plane to the forces applied.

Taper Pin

A pin that has a gradual decrease in diameter from one end to the other, used to locate or hold parts together.

Straight Pin

A fastener or guide that is long in relation to its diameter, utilized in various mechanical or construction applications.

Hole Alignment

The accuracy with which holes are positioned in relation to each other or to specified datums.