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.
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.
举一反三
- According to the policies, the name on the ticket cannot be changed once the ticket is ______.
- According to the cost principle, it is preferable for managers to report an estimate of an asset’s value.
- However, the actual language itself hasn’t changed much. We don’t get new ______ or new ______ .
- The environment cannot be changed, so the mood too.
- The term accumulated depreciation, as used in accounting, is best defined as A: the portion of a plant asset recognized as expense since the asset was acquired. B: funds (or cash) set aside to replace the asset being depreciated. C: earnings retained in the business that will be used to purchase another asset when the present asset is depreciated. D: an expense of doing business.