Which the company decided to adjust the useful life

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Reference no: EM132778216

Problem 1: Core disclosure of subsequent unadjusted events to the financial statements:

A) The nature of the event and its financial impact
B) Show the effect in the income statement for the same year
C) Estimating the best financial impact
D) All of the above

E) None of the above

Problem 2: The company decided to adjust the useful life from 4 to 6 years at the end of the third year for an asset whose cost is 10,000 and its accumulated depreciation is 5,000, so the effect of this change is:

a) Decrease in profits 1250
b) Increase profits 1250
c) Increasing profits by 2500
d) There is no effect on earnings
e) All of the above
f) None of the above

Reference no: EM132778216

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