A Change in the Salvage Value of an Asset Depreciated

question 7

Multiple Choice

A change in the salvage value of an asset depreciated on a straight-line basis and arising because additional information has been obtained is

• A) An accounting change that should be reported in the period of change and future periods of change if the change affects both
• B) An accounting change that should be reported by restating the financial statements of all prior periods presented
• C) A correction of an error
• D) Not an accounting change

---

Definitions:

Unknown Chemical

A substance whose identity, composition, or effects are not known, often posing a risk in situations of exposure or contamination.

Closed Head Injury

A type of traumatic brain injury where the skull remains intact, but there may be damage to the brain tissues caused by a blow or jolt to the head.

Displaced Wrist Fracture

A break in one or more of the bones in the wrist where the bone fragments have moved out of their normal alignment.

Natural Disaster

A natural event such as a flood, earthquake, or hurricane that causes significant damage or loss of life.