ABC Ltd Has Discovered That the Useful Life Estimate It

question 17

Multiple Choice

ABC Ltd has discovered that the useful life estimate it made on a material depreciable asset was incorrect.The correct treatment of this event is:

• A)treat it as an error and adjust prospectively
• B)treat it as an error and adjust retrospectively
• C)treat it as a change in an accounting estimate and adjust prospectively
• D)treat it as a change in an accounting estimate and adjust retrospectively

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Definitions:

Coordination

The organization of different elements or activities to operate effectively together.

Osteoporosis

A condition where bones become weak and brittle due to loss of bone density, increasing the risk of fractures.

Bone Mass

The amount of mineral matter per square centimeter of bones, an indicator of bone density and strength.

Moderate Exercise

Physical activity that is of moderate intensity, raising the heart rate and breathing rate, but still allows one to carry on a conversation.