For each change or error below, indicate how it would be accounted for. 1. Change due to understatement of inventory. options: A.) accounted for prospectively b.) prior period adjustment 2. change from direct write-off to allowance method of accounting for bad debts. Options: a.) accounted for retrospectively b.) prior period adjustment
For each change or error below, indicate how it would be accounted for. 1. Change due to understatement of inventory. options: A.) accounted for prospectively b.) prior period adjustment 2. change from direct write-off to allowance method of accounting for bad debts. Options: a.) accounted for retrospectively b.) prior period adjustment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For each change or error below, indicate how it would be accounted for.
1. Change due to understatement of inventory.
options:
A.) accounted for prospectively
b.) prior period adjustment
2.
change from direct write-off to allowance method of accounting for
Options:
a.) accounted for retrospectively
b.) prior period adjustment
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