7. change in an accounting estimate is: A. Reflected in past financial statements B. Reflected in future financial statements and also requires modification of past statements C. A change in a calculated amount that is part of financial statements that results from new information or subsequent developments and from better insight or improved judgment D. Not allowed under current accounting rules E. Considered an error in the financial statements 8. Inadequacy refers to: A. The insufficient capacity of a company's plant assets to meet the company's growing production demands B. An asset that is worn out C. An asset that is no longer useful in producing goods and services D. The condition where the salvage value is too small to replace the asset E. The condition where the asset's salvage value is less than its cost 9. Total asset turnover is used to evaluate: A. The efficiency of management's use of assets to generate sales B. The need for asset replacement C. The number of times operating assets were sold during the year D. The cash flows used to acquire assets E. The relation between asset cost and book value 10. Land improvements are: A. Assets that increase the usefulness of land and like land, are not depreciated B. Assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation C. Included in the cost of the land account D. Expensed in the period incurred E. Also called basket purchases