Once the estimated depreciation expense for an asset is calculated:
A)It cannot be changed,based on the historical cost principle.
B)It may be revised based on new information.
C)Any changes are accumulated and recognized when the asset is sold.
D)The estimate itself cannot be changed;however,new information should be disclosed in financial statement footnotes.
E)It cannot be changed,based on the consistency principle.

Question

Quizplus · Accepted Answer

The estimated depreciation expense for an asset may be revised based on new information, such as changes in useful life or salvage value. This is in accordance with the accounting principle of conservatism, which allows for adjustments to be made when necessary to ensure that the financial statements are not misleading.

Once the Estimated Depreciation Expense for an Asset Is Calculated