The Original Depreciation or Amortization Schedule for Long-Lived Assets Sometimes

question 111

Multiple Choice

The original depreciation or amortization schedule for long-lived assets sometimes requires changing.Which of the following is/are not true?

• A)Each period a firm must evaluate its estimates of service life and assess if these estimates require changing in light of new information.
• B)Each period a firm must evaluate its estimates of salvage value and assess if these estimates require changing in light of new information.
• C)The firm makes no adjustment for the inaccurate estimates but spreads the remaining carrying value less the new estimate of salvage value over the new estimate of the remaining service life of the asset.
• D)If changing from the old estimates to the new estimates would have a material impact, the firm must change the depreciation or amortization schedule retroactively.
• E)none of the above

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Definitions:

Eating Disorder

Mental disorders characterized by abnormal or disturbed eating habits, such as anorexia nervosa or bulimia nervosa.

Predictive Validity

The extent to which a score on a scale or test predicts future performance on a related outcome.

Independent Variable

In an experimental setup, the variable that is manipulated or changed to observe its effect on a dependent variable.

Dependent Variable

In an experimental setting, the variable that is being tested and measured, which is expected to change as a result of manipulations to the independent variable.