Once the depreciation expense for a long-lived asset is calculated:
A)it cannot be changed because of the cost principle.
B)it may be revised based on new information.
C)any changes are not recognized until the date the asset is sold.
D)it cannot be changed due to the consistency principle.

Question

Quizplus · Accepted Answer

The depreciation expense calculation uses estimates for useful life and residual value.If these estimates are revised,the change is reported prospectively.

Once the Depreciation Expense for a Long-Lived Asset Is Calculated