Answered: A change in accounting estimate…

A change in accounting estimate affects? a) Prior periods only b) All periods equally c) Current period only d) Current and future periods

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 1MC: The cumulative effect of an accounting change should generally be reported as an adjustment to the...

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A change in accounting estimate affects?
The cumulative effect of an accounting change should generally be reported as an adjustment to the beginning balance of retained earnings in tin period in which the change is made for a:
Generally accepted methods of accounting for a change in accounting principle include O ncluding the cumulative effect of the change in current period net income. restating prior years' financial statements presented for comparative purposes. O making a prior period adjustment. O prospective changes.
What impact may the low accuracy of accounting estimates have on the annual statements?
9. A change in accounting principle requires that the cumulative effect of the change for prior periods be shown as an adjustment to: a. beginning retained earnings of the earliest period presented. b. net income of the period in which the change occurred. c. comprehensive income for the earliest period presented. d. stockholders’ equity of the period in which the change occurred.
Retrospective changes require all but which of the following? Group of answer choices adjustments to assets and liabilities to reflect the cumulative effect of the change on periods prior to those presented restatement of financial statements to reflect the effects of the change for each period presented detailed numerical comparisons of all prior periods to restated statements retained earnings restated for the cumulative effect of the change on income for periods prior to those presented
Which of the following events or transactions has NO effect on retained earnings? a. Net income. b. Dividends declared. c. Other accumulated comprehensive income. d. Earnings adjustment from previous periods. Prior period adjustments
Which of the following would appear as a prior period adjustment? Group of answer choices a correction in the calculation of earnings per share of a prior period a material difference between the actual and estimated uncollectible accounts receivable a material loss resulting from the sale of fixed assets which were acquired in a prior period material error in the computation of depreciation expense in the Year 1 that was discovered and corrected in the Year 3
Which is the proper time period to record the effect of a change inaccounting estimated? A. Current period and prospectivelyB. Current period and retrospectivelyC. RetrospectivelyD. Current period
3 PTS
If accrued liabilities are overestimated in the current period, the reported income in a following period will be lower than it should be. Select one: True False
Where financial statements for a single year are being presented, a prior period error recognized in the current year ordinarily would a. Affect net income of the current year. b. Be shown as an adjustment of the affected component of equity at the start of the current year. c. Be included in the statement of recognized gains and losses. d. Be shown as an extraordinary item on the current year's financial statement of comprehensive income.