Changes in the Depreciation Rate Are Accounted for as A(n)

question 64

Multiple Choice

Changes in the depreciation rate are accounted for as a(n)

• A) adjustment to current and future periods.
• B) adjustment to the current period only.
• C) adjustment to future periods only.
• D) catch-up adjustment to prior periods.

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Definitions:

Worksheet

An accounting tool used for planning and preparing financial statements, allowing accountants to adjust and update figures through a series of adjustments.

Depreciation Expense

the systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, resulting in net profit or loss.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.