If a Company Changes the Useful Life of Its Assets

question 10

Multiple Choice

If a company changes the useful life of its assets from 10 years to 12 years, this will be recorded as:

• A)a nonrecurring gain.
• B)an extraordinary item.
• C)a change in accounting principle.
• D)None of the above

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Definitions:

Demand Curve

A graphical representation of the quantity of a good that consumers are willing and able to buy at different prices.

Price Change

A variation in the cost of a good or service over time.

Technology Improvement

The enhancement or development of new technologies or the improvement of existing technologies, which can lead to increased efficiency and productivity.

Complementary Good

A product or service that is typically used or consumed together with another good or service, increasing demand for one another.