You are watching: Which of the following is not a retrospective-type accounting change?
Which that the complying with is no treated as a adjust in accountancy principle?a. A adjust from LIFO to FIFO for inventory valuationb. A adjust to a different method of depreciation for plant assetsc. A adjust from full-cost come successful efforts in the extractive industryd. A readjust from completed-contract to percentage-of-completion
Which that the adhering to is not a retrospective-type bookkeeping change?a. Completed-contract an approach to the percentage-of-completion method for permanent contractsb. LIFO an approach to the FIFO technique for perform valuationc. Sum-of-the-years"-digits method to the straight-line methodd. "Full cost" method to another an approach in the extractive industry
Which that the complying with is accounted for as a adjust in accountancy principle?a. A change in the estimated valuable life of plant assets.b. A adjust from the cash communication of audit to the accrual basis of accounting.c. A adjust from expensing immaterial expenditures to deferring and also amortizing them as they come to be material.d. A adjust in list valuation indigenous average cost to FIFO.
A firm changes from straight-line come an accelerated an approach of calculating depreciation, which will be similar to the an approach used for tax purposes. The entry to document this adjust should include aa. Credit transaction to collected Depreciation.b. Debit come Retained income in the lot of the distinction on former years.c. Debit come Deferred taxation Asset.d. Credit to Deferred taxes Liability.
Which the the complying with disclosures is compelled for a adjust from sum-of-the-years-digits come straight-line?a. The cumulative result on front years, net of tax, in the existing retained income statementb. Restatement of front years" revenue statementsc. Recomputation that current and future years" depreciationd. Every one of these are required.
A firm changes indigenous percentage-of-completion come completed-contract, which is the an approach used for taxation purposes. The entry to record this adjust should include aa. Debit to building in Process.b. Debit to Loss on permanent Contracts in the amount of the distinction on front years, net of tax.c. Debit come Retained income in the quantity of the difference on front years, net of tax.d. Credit transaction to Deferred taxation Liability.
Which that the complying with disclosures is forced for a readjust from LIFO come FIFO?a. The cumulative impact on former years, network of tax, in the existing retained revenue statementb. The justification because that the changec. Restated front year income statementsd. All of these room required.
Which kind of audit change should always be accounted because that in current and future periods?a. Adjust in accountancy principleb. Change in report entityc. Change in audit estimated. Mediate of one error
Which of the following is (are) the proper time period(s) to record the results of a change in audit estimate?a. Current duration and prospectivelyb. Current period and retrospectivelyc. Retrospectively onlyd. Current duration only
When a firm decides to move from the double-declining balance an approach to the straight-line method, this change should be tackled as aa. Readjust in accountancy principle.b. Readjust in accounting estimate.c. Prior period adjustment.d. Mediate of an error.
The approximated life that a structure that has been depreciated 30 year of an originally estimated life the 50 years has been revised to a continuing to be life the 10 years. Based on this information, the accountant shoulda. Continue to depreciate the building over the original 50-year life.b. Depreciate the remaining book value end the remaining life of the asset.c. Adjust collected depreciation come its proper balance, through net income, based upon a 40-year life, and also then depreciate the changed book worth as though the estimated life had always been 40 years.d. Adjust collected depreciation come its proper balance through preserved earnings, based upon a 40-year life, and also then depreciate the adjusted book value as though the estimated life had always been 40 years.
Which that the complying with statements is correct?a. Transforms in audit principle are always handled in the present or prospective period.b. Former statements have to be restated for changes in audit estimates.c. A change from expensing certain costs to capitalizing these expenses due to a readjust in the duration benefited, have to be handled as a change in audit estimate.d. Correction of one error regarded a prior period should be considered as an adjustment to present year network income.
A readjust from expensing details costs to capitalizing these prices due come a adjust in the period benefited, have to be taken on as a adjust in accountancy estimate.
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Which the the following defines a adjust in reporting entity?a. A company acquires a subsidiary the is to be accounted for together a purchase.b. A manufacturing firm expands its sector from regional to nationwide.c. A firm divests chin of a european branch sales office.d. Transforming the companies included in an unified financial statements.
On January 1, 2010, Neal corporation acquired devices at a price of $900,000. Neal adopted the sum-of-the-years"-digits an approach of depreciation for this equipment and had been recording depreciation over an approximated life the eight years, v no residual value. In ~ the start of 2013, a decision was made to change to the straight-line method of depreciation for this equipment. The depreciation cost for 2013 would certainly bea. $46,875b. $75,000c. $112,500d. $180,000
On January 1, 2010, Knapp Corporation obtained machinery in ~ a price of $250,000. Knapp adopted the double-declining balance method of depreciation because that this machinery and had to be recording depreciation end an estimated useful life the ten years, through no residual value. At the beginning of 2013, a decision to be made to adjust to the straight-line method of depreciation because that the machinery. The depreciation cost for 2013 would certainly be a. $25,600b. $36,572c. $50,000d. $71,428
MyAccountingLab through Pearson eText -- Instant access -- for Financial Accounting9th EditionCharles T. Horngren
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