Which of the Following Is True When the Estimate of an Asset's

question 86

Multiple Choice

Which of the following is true when the estimate of an asset's useful life is changed?

• A) The new estimate is ignored until the last year of the asset's life.
• B) The depreciation expense in the prior years are restated.
• C) Prior years' financial statements must be restated.
• D) The asset's remaining depreciable book value will be spread over the asset's remaining life.

---

Definitions:

Electroconvulsive Therapy (ECT)

A psychiatric treatment involving electrically induced seizures to provide relief from mental disorders.

Major Depression

A serious medical condition characterized by persistent sadness, lack of interest in life, and other physical and emotional symptoms that interfere with daily functioning.

Deinstitutionalisation

The practice of substituting extensive psychiatric hospital stays with more integrated community-based mental health care for individuals with mental health conditions or developmental disabilities.

Inpatient Population

Individuals who are hospitalized and receiving medical treatment or care within a facility.