Asked by
Jaysa Quinlivan
on Oct 28, 2024
Verified
Which of the following events would be accounted for as a prior-period adjustment?
A) change in the depreciable lives of plant assets
B) an overstatement of depreciation expense in a prior year
C) change in the method of computing depreciation of plant assets
D) change in inventory cost flow assumption from first-in, first-out to last-in, first-out
Depreciable Lives
The estimated period over which a fixed asset is considered to be useful and thus can be depreciated for accounting purposes.
Depreciation Expense
The allocation of the cost of a tangible fixed asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.
- Acknowledge the corrections from past periods and their influence on the financial records.
Verified Answer
MR
Learning Objectives
- Acknowledge the corrections from past periods and their influence on the financial records.