Once the Estimated Depreciation Expense for an Asset Is Calculated

question 29

Multiple Choice

Once the estimated depreciation expense for an asset is calculated:

• A) It cannot be changed due to the historical cost principle.
• B) It may be revised based on new information.
• C) Any changes are accumulated and recognized when the asset is sold.
• D) The estimate itself cannot be changed; however, new information should be disclosed in financial statement footnotes.
• E) It cannot be changed due to the consistency principle.

---

Definitions:

Behavioural Methods

A range of techniques used in management and psychology to understand and influence individual actions in an organizational context, often for training or assessment purposes.

Developmental Feedback

Constructive criticism provided to individuals to promote their personal and professional growth.

Results Evaluations

The analysis and assessment of the outcomes of a specific activity or program to determine its effectiveness and impact, often guiding future improvements.

Discretion

The freedom or authority to make decisions and judgments in certain situations, often within professional or legal contexts.