A Revision of an Estimate Which Will Extend the Asset's

question 171

Multiple Choice

A revision of an estimate which will extend the asset's useful life is called a change in accounting:

• A) theory.
• B) policy.
• C) procedure.
• D) estimate.

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Definitions:

Qualifying Widow(er)

A tax filing status available to a widowed spouse with a dependent child, offering benefits similar to the Married Filing Jointly status for two years following the year of the spouse's death.

Personal Exemption

A deduction allowed by the IRS for taxpayers, their spouses, and dependents, significantly reduced to $0 for tax years 2018 through 2025 under the Tax Cuts and Jobs Act.

Dependent

An individual, often a child or spouse, who relies on another person for financial support and can qualify the provider for tax exemptions.

Federal Individual Income Tax

A tax levied by the IRS on the annual earnings of individuals, estates, and trusts.