Homework Help is Here – Start Your Trial Now!
Business
Accounting
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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
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 Retained Earnings include all of the following Except

Choices;
Non-Current asset held for sale
Prior period errors and Effect of change in accounting policy.
Dividends declared
Appropriation of retained earnings
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting Policies, Changes in Accounting Estimates and Errors
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.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS