Question 6Indicate with the appropriate letter the nature of each situation described below:Туре оf ChangePR Change in policy reported retrospectivelyP Change in policy reported prospectlivelyEChange in estimateEC Emror comectionNot an accounting change1. Settling a lawsuit for less than the amount accrued previousily as a provision.2. Change from FIFO inventory costing to the weighted average inventory costing. However, the oumulative effect of the change cannot be determined.3. Change by a retail store from recognizing refunds on an actual claims basis to the allowance method.4. A shift of certain manufacturing overhead costs to inventory that previously were expensed as incurred to more acourately measure cost of goods sold. (Either method is acceptable.)5. Change from cost model to fair value model for investment property

Name: Question 6Indicate with the appropriate letter the nature of each sit
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Description: Question 6Indicate with the appropriate letter the nature of each situation described below:Туре оf ChangePR Change in policy reported retrospectivelyP Change in policy reported prospectlivelyEChange in estimateEC Emror comectionNot an accounting ch

appropriate letter indicate with the nature are as follows.

Business

Accounting

Question 6 Indicate with the appropriate letter the nature of each situation described below: Type of Chang PR Change in policy reported retrospectively P Change in policy reported prospectively E Change in estimate EC Eror comection N Not an accounting change 1. Setting a lawsult for less than the amount accrued previously as a provision. 2. Change from FIFO inventory costing to the weighted-average inventory costing. However, the cumulative effect of the change cannot be determined. 3. Change by a retail store from recognizing refunds on an actual claims basis to the allowance method. 4. A shift of certain manufacturing overhead costs to inventory that previously were expensed as incurred to more accurately measure cost of goods sold. (Either method is acceptable.) 5. Change from cost model to fair value model for investment property

Question 6 Indicate with the appropriate letter the nature of each situation described below: Type of Chang PR Change in policy reported retrospectively P Change in policy reported prospectively E Change in estimate EC Eror comection N Not an accounting change 1. Setting a lawsult for less than the amount accrued previously as a provision. 2. Change from FIFO inventory costing to the weighted-average inventory costing. However, the cumulative effect of the change cannot be determined. 3. Change by a retail store from recognizing refunds on an actual claims basis to the allowance method. 4. A shift of certain manufacturing overhead costs to inventory that previously were expensed as incurred to more accurately measure cost of goods sold. (Either method is acceptable.) 5. Change from cost model to fair value model for investment property

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QUESTION 11 Match the term on the left to the appropriate description on the right. v Cost of goods available for sale (COGAS) A. A valuation rule applied to ending inventory. v LIFO reserve B. The maximum value that cost of goods sold (COGS) can be in a period. C. The amount by which inventory measured under FIFO would exceed inventory measured under LIFO v Lower-of-cost-or-market v Inventory turnover ratio. D. An inventory cost flow assumption. E. A measure for evaluating a company's inventory management. v FIFO (first-in, first out) v Periodic inventory F. A system for calculating COGS based on ending inventory value.
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