1. An entity made a very large arithmetical error in the calculation of depreciation. The correction of the error when discovered in the next year should be treated as Choices; A prior period adjustment Other expense for the year when the error was made. An increase in depreciation expense for the year when the error is discovered. A component of income for the year when the error is discovered but separately reported.
1. An entity made a very large arithmetical error in the calculation of depreciation. The correction of the error when discovered in the next year should be treated as Choices; A prior period adjustment Other expense for the year when the error was made. An increase in depreciation expense for the year when the error is discovered. A component of income for the year when the error is discovered but separately reported.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
Problem 2TF
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1. An entity made a very large arithmetical error in the calculation of depreciation . The
correction of the error when discovered in the next year should be treated as
Choices;
A prior period adjustment
Other expense for the year when the error was made.
An increase in depreciation expense for the year when the error is discovered.
A component of income for the year when the error is discovered but separately reported.
2. Items directly affecting
Choices;
Non-Current asset held for sale
Prior period errors and Effect of change in accounting policy.
Dividends declared
Appropriation of retained earnings
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