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DP
Question Practice

What may happen if a business underestimates the useful life of an asset?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 11
Accountancy
Financial Accounting - I
Depreciation, Provisions and Reserves
Question Bank

What may happen if a business ...

Single Answer MCQ
Q-00054228

What may happen if a business underestimates the useful life of an asset?

1

Higher depreciation charges than necessary

2

Lower depreciation charges than necessary

3

No impact on financial statements

4

Enhanced asset valuation

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