If the useful life of an asset is revised upward because it is expected to remain productive longer than previously esti...
Type: MCQ • Marks: 1
If the useful life of an asset is revised upward because it is expected to remain productive longer than previously estimated, the effect is generally:
Options
A. Future depreciation may decrease, subject to the applicable accounting framework
B. Past depreciation is automatically erased
C. The asset becomes cash
D. Depreciation immediately becomes zero forever
Explanation
Changes in useful-life estimates generally affect depreciation prospectively over the remaining useful life.
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UPSC Principal & Vice PrincipalManagement Finance Administration
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