Under estimation of useful life of a depreciable asset will lead to -
A)Overstatement of profit .
B)Excess charging of depreciation every year .
C)Over valuation of assets in Balance Sheet .
D)Short charging of depreciation every year

Question

Quizplus · Accepted Answer

Underestimating the useful life of an asset results in higher annual depreciation charges, as the asset's cost is spread over a shorter period.

Under Estimation of Useful Life of a Depreciable Asset Will