Once the estimated depreciation expense for an asset is calculated:
A) It cannot be changed due to 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 due to the consistency principle.

Question

Quizplus · Accepted Answer

The estimated depreciation expense for an asset may be revised based on new information that becomes available. For example, if the useful life of an asset is found to be longer or shorter than originally estimated, the depreciation expense can be adjusted accordingly.

Once the Estimated Depreciation Expense for an Asset Is Calculated