8. Significant accounting policies may not be a. Selected on the basis of judgment. b. Selected from existing acceptable alternatives. c. Unusual ór innovative in application. d. Omitted from financial statement disclosure.

Q: Question 10 Which of the following should be reported when an entity changed the expected service…

A: Retrospective accounting changes involve adjusting the financial statements of previous periods as…

Q: Auditors are not responsible for accounting estimates with respect toa. Making the estimates.b.…

A: Select the accounting policies and accounting estimates is the responsibility of the management to .…

Q: both financial and management accounting rely exclusively on gaap for reporting true false

A: Financial accounting is that branch of accounting which deals with preparation and circulation of…

Q: Accounting changes may be Multiple Choice O mandatory. voluntary. voluntary or mandatory.…

A: "Accounting changes" are modifications to an organization's reporting practices, estimations,…

Q: Operating segments that do not meet any of the quantitative thresholds A. Cannot be considered…

A: Operating segment is a segment or component which is engaged in business activities and incurs…

Q: A material weakness is a situation in whicha. It is probable that an immaterial financial statement…

A: Material weakness: Combination of deficiencies in internal control over financial reporting of the…

Q: Explain the concept of hindsight in relation to changes in accounting estimates and errors. How…

A: The concept of hindsight in accounting relates to the situation where subsequent information becomes…

Q: The use of the cumulative effect method to account for a change in accounting principle violates the…

A: Accounting principles are the set of rules which define the way accounts should be prepared and…

Q: Which assets depreciate?

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Misstatements in the financial statements can result from errors or fraud and may consist of any of…

A: EXPLANATION:- A misstatement causes the financial statements to be not in accordance with the…

Q: Information is considered material if:     it would have a bearing on decisions of those who use…

A: While preparing the books of accounts i.e. the financial statements the company needs to disclose…

Q: Materiality is a key factor guiding the substantive procedures. which one is TRUE? Materiality level…

A: Materiality in audit is a concept which sets a threshold limit to obtain reasonable assurance that…

Q: Financial reports of the lowest level of quality refl ect:A . fi ctitious events.B . biased…

A: Financial reports are reports issued by an organization in order to highlight their financial…