Canetoads Ltd Has Discovered That the Estimated Useful Life Made

question 43

Multiple Choice

Canetoads Ltd has discovered that the estimated useful life made on a material depreciable asset was incorrect due to a change in the way the asset was being used. The correct accounting treatment of this event is to:

• A) disclose the change in the notes to the financial statements.
• 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:

Southeastern States

The Southeastern States of the United States typically include Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia, known for their unique cultural, economic, and historical attributes.

Daniel Webster

Was a prominent American statesman and lawyer, known for his high-caliber oratory supporting the Federalist party and advocating for strong federal government.

Nullification Crisis

A political crisis during Andrew Jackson's presidency involving a confrontation between South Carolina and the federal government over the state's attempt to nullify federal tariffs.

Historical Significance

The importance assigned to an event, object, or person in history due to its impact or influence on the present or future.