Give me answer Financial Accounting: How should a company report a priorperiod error correction due to mathematical mistakes ininventory valuation? (4)a) As an extraordinary item in current periodb) As a retrospective restatement of prior periodsc) As a prospective change in estimated) In notes to financial statements only

Explanation of Prior Period Error: Prior period errors are omissions or misstatements in an entity's…

Answered: Financial Accounting: How should a…

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter2: Audits Of High-risk Accounts

Section2.2: Golden Bear Golf, Inc.

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Prospective application of recognizing the effect of a change in an accounting estimate means A. correcting the recognition, measurement and disclosure of amounts of elements of financial statements as if a prior period error had never occured B. recognizing the effect of the change in the accounting estimate in the current and future periods affected by the change C. applying a new accounting policy to transactions other events and conditions as if the policy had always been applied D. Any of the choices
Which of the following statements about a change in accounting estimate is not true? A. A change in accounting estimate can only be made when it is required to comply with an accounting standard or interpretation. B. Changes in accounting estimates result from new information or new developments. C. The effects of a change in accounting estimate should be applied prospectively. D. A change in estimate is an adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset.
Which statement is incorrect concerning accounting estimate a.As a result of uncertainties inherent in business activities, many items in financial statements cannot be measured withprecision but can only be estimated. b.By its very nature, the revision of an estimate relates to a prior period and is a correction of an error. c.The use of reasonable estimate is an essential part of the preparation of financial statements and does not determinetheir reliability. d.An estimate may need revision if changes occur in the circumstances on which the estimate was based or as result ofnew information or more experience.
Which of the following statements regarding accounting change is correct? a. Change in depreciation method is accounted for as a change in accounting policy. b. Change in accounting estimate is accounted for in current and future periods. c. The categories of accounting changes are change in accounting estimate and correction of prior period error. d. A switch from the direct write-off method to the allowance method of accounting for bad debts is an example of change in accounting policy.
If it is material, which of the following does not require all prior reported financial statements and/or retained earnings to be changed or adjusted? Group of answer choices Change in an accounting principle. Change in an estimate. Correction of an accounting error. The correct answer is not listed. Change in a reporting entity. Next
Kindly provide the correct answers for the following items.
Where a change in accounting estimates occurs, which of the following should be disclosed? A. The nature of the change and the impact on previous income statements The fact that the amount of the effect on future periods will not be disclosed because B. estimating that amount is impracticable and the reason for the change and comparative data to show the impact with and without the change The fact that the amount of the effect on future C. periods will not be disclosed because estimating that amount is impracticable D. The reason for the change and comparative data to show the effect with and without the change
Which type of accounting change should always be accounted for in current and future periods? Change in accounting policy Change in reporting entity Change in accounting estimate Correction of an error
Question Through which method should companies report corrections of accounting errors? a) Cumulative effect in current income b) Prior period adjustment to retained earnings c) Prospective change in estimates d) Operating expense adjustment
Which of the following is not a form of earnings management? a) Reporting fictitious transactions b) Changes in accounting assumptions c) Timing revenue recognition d) Write-downs of operating assets
A change in accounting estimate is An adjustment of the carrying amount of an asset or liability, or related expense, resulting from reassessing the expected future benefits and obligations associated with that asset or liability. A change in the specific principles, bases, conventions, rules and practices applied b an entity in preparing and presenting financial statements. Omission from, and misstatement in an entity's financial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that was available and could reasonably be expected to have been obtained and taken into account in preparing those statements. All of the above.
Which statement concerning accounting for accounting changes and errors is not true? a. An error is accounted for retroactively b. A change in accounting principle is accounted for prospectively c. A change in accounting principle may be accounted for retroactively d. A change in accounting estimate is accounted for prospectively

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