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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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 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.
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
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
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
What are interim financial statements? Do accounts thatappear in a company’s interim balance sheet require anyspecial computations to be reported correctly? Explain.
Why should the beginning retained earnings be adjusted for prior period errors and effects of change in accounting policy?
8. Which of the following is true of accounting for changes in estimates? a. A company recognizes a change in estimate by making a retrospective adjustment to the financial statements. b. A company accounts for changes in estimates only in the period of change, even though it affects the future periods. c. Changes in estimates are not carried back to adjust prior years. d. Changes in estimates are considered as errors.
May you please help me determine the effect on the accounting equation?
When using the allowance method, failure to record bad debt expense would have what effect on the accounting equation?: Assets Liabilities Stockholder's Equity A. No Effect No Effect No Effect В. Overstated No Effect Overstated С. Understated No Effect Understated D. Overstated Overstated Overstated Е. No Effect Understated Overstated Which of the following statements is FALSE?
please choose best options in this financial account questions. No AI

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