If the audit team notes the client has made a significant change in its product line which requires that new equipment be purchased,that may be an indication of
A)book value.
B)scrap value.
C)impaired value.
D)depreciation value.

Question

Quizplus · Accepted Answer

A significant change in the product line requiring new equipment may indicate that the existing equipment's value is impaired, as it may no longer be useful or generate future economic benefits for the company.

If the Audit Team Notes the Client Has Made a Significant