Accounting for a Change in the Estimated Service Life of Equipment

question 46

Multiple Choice

Accounting for a change in the estimated service life of equipment:

• A) Is handled prospectively.
• B) Requires retroactive restatement of prior year's financial statements.
• C) Requires a prior period adjustment.
• D) Is handled currently as a change in accounting principle.

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Definitions:

Periocular

Relating to or situated around the eye.

Intraocular

Pertaining to within the eye, often used to describe pressures or devices placed inside the eye.

Extraocular

Referring to muscles, nerves, or movements outside the eyeball itself.

Super-

A prefix denoting above, beyond, or higher in quality or quantity.