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:

Rebellious

characterizes individuals or actions that resist control, authority, or tradition, often manifesting as a form of protest or dissent.

Discontinuity Effect

A phenomenon where intergroup interactions are more competitive or aggressive than interindividual interactions, often due to perceived group boundaries.

Abrupt Increases

Sudden and significant rises in the level, amount, or degree of something.

Competitive

A characteristic of individuals or entities that constantly strive to outperform others to achieve goals or attain superiority.