Revising an Estimate of the Useful Life or Salvage Value

question 233

True/False

Revising an estimate of the useful life or salvage value of a plant asset is referred to as a change in accounting estimate and is reflected in the current, and future financial statements.

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Definitions:

ANOVA

Short for Analysis of Variance, a statistical method used to compare the means of three or more samples to see if at least one differs significantly.

Interaction Effect

The interdependent effect of multiple variables on the outcome variable, where the effect of one explanatory variable depends on the level of another variable.

F Statistic

A ratio used in the analysis of variance (ANOVA) to determine whether there are significant differences between the means of three or more groups.

P-value

The probability of observing results at least as extreme as those measured when the null hypothesis is true.