1. S1: In the statement of changes in equity, the effect of the correction of aprior period error is presented separately for each component of equity.S2: Preference share dividend appear under the retained earnings sectionof the statement of changes in equityA. True, TrueB. False, FalseC. True, FalseD. False True2.The entity classified a building as held for sale on January 1, 2020. However, the company decided to use it for a product line expansion on December 31, 2020. Which of the following statements are true?The company will record depreciation expense for the year 2020.The company will recognize an impairment loss on January 1, 2020, if applicable.I onlyII onlyBoth I and IINone of the above3.Which statement is incorrect? Revenues are income that arises from the ordinary course of business activities.Revenues may arise from decrease in liability from primary operations.Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received.Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses.None of the above

Hi student Since there are multiple questions, we will answer only first question. If you want…

Answered: . S1: In the statement of changes in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

1. S1: In the statement of changes in equity, the effect of the correction of a
prior period error is presented separately for each component of equity.
S2: Preference share dividend appear under the retained earnings section
of the statement of changes in equity

A. True, True
B. False, False
C. True, False
D. False True

2.The entity classified a building as held for sale on January 1, 2020. However, the company decided to use it for a product line expansion on December 31, 2020. Which of the following statements are true?

The company will record depreciation expense for the year 2020.
The company will recognize an impairment loss on January 1, 2020, if applicable.

I only
II only
Both I and II
None of the above

3.Which statement is incorrect?

Revenues are income that arises from the ordinary course of business activities.
Revenues may arise from decrease in liability from primary operations.
Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received.
Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses.
None of the above

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions