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.

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Definitions:

Differentiated Needs

Distinct and specific requirements of customers or markets that businesses aim to fulfill with customized products or services.

Customizing Products

The process of modifying or tailoring products and services to meet specific customer preferences or requirements.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to organizations.

Strategic Objectives

Long-term goals that an organization seeks to achieve to fulfill its mission and vision.