Multiple Choice Question:A change in accounting principle requireswhat?a) Only prospective applicationb) Retrospective applicationc) No disclosured) Only current year adjustment

Explanation of Accounting Principle Change: A change in accounting principle represents a switch…

Answered: Multiple Choice Question: A change in…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.23E: The Effect of Ignoring Adjusting Entries on Net Income For each of the following independent...

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The Effect of Ignoring Adjusting Entries on Net Income For each of the following independent situations, determine whether the effect of ignoring the required adjusting entry will result in an understatement (U), will result in an overstatement (O), or will have no effect (NE) on net income for the period.
Current Attempt in Progress Which of the following disclosures is not required for a change from LIFO to FIFO? O indirect effect impact related to the change in accounting principle O the cumulative effect on prior years, net of tax, in the current retained earnings statement O restated prior year income statements O the justification for the change
When the FASB issues a new generally accepted accounting principle, it may require companies to apply the new principle prospectively, or to account for the change by the retrospective adjustment method. Required: Why do you think that the FASB requires one of two different transition methods when a company adopts a newly required accounting principle? Do you agree with the use of two alternative methods?
how does the change in accounting of nonrecurring items?
When the retrospective approach is used for a change to the FIFO method, which of the following accounts is usually not adjusted? Multiple Choice Income Taxes Payable. Inventory. Retained Earnings. All of these answer choices are usually adjusted. 24 of 44 Next >
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Intermediate Accounting 105 May I please have a GAAP explanation, along with examples providing concepts? Under what conditions should a short-term obligation be excluded from current liabilities? Thank you so much
The Standard IAS 37 sets the criteria for recognition and measurement of Provisions; Contingent liabilities and Contingent assets; and requires several disclosures about these items to understand them better. Where do you find contingent liabilities in the financial statements? a.Notes to Accounts b.None of the options c.Current Liabilities d.Non-current Liabilities
#52 Which of the following disclosures is required for a change from LIFO to FIFO? Question 52 options: a The cumulative effect on prior years, net of tax, in the current retained earnings statement b Restated prior year income statements c The justification for the change d All of these are required.
9
Select accurate Option
Why should executory contracts be disclosed in the financial statements? Group of answer choices They create current income tax obligations They create an obligation contingent upon the occurrence of a past event They represent a possible outflow of economic resources None of the above PreviousNext

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Multiple Choice Question: A change in accounting principle requires what? a) Only prospective application b) Retrospective application c) No disclosure d) Only current year adjustment