Which of the following is TRUE when the estimate of an asset's useful life is increased?

Question

Quizplus · Accepted Answer

Increasing the estimate of an asset's useful life means that the asset is expected to provide economic benefits for a longer period of time. As a result, the annual depreciation expense is decreased for the remaining years of the asset's life. This is because the cost of the asset is spread over a longer period of time, reducing the amount of depreciation expense recognized each year. There would be no need to ignore the new estimate or restate prior years' financial statements.

Which of the Following Is TRUE When the Estimate of an Asset's