For the past twenty years,Bijou Company has had a policy of expensing all assets that cost less than $50,even if they are expected to last for more than a year,because it is simpler and easier than depreciating low-cost assets over their useful lives.This year,Bijou bought a new computerized accounting system and decided to depreciate all assets over their useful lives,even low-cost assets like wastebaskets and pencil sharpeners.This accounting choice would be considered ________.

Question

Quizplus · Accepted Answer

Choosing to change the accounting policy to depreciate all assets over their useful lives, even low-cost assets, is considered an aggressive accounting choice. This is because it will result in a lower net income for the current period, as the expense will be spread out over the useful life of the assets.

For the Past Twenty Years,Bijou Company Has Had a Policy