Which of the following is a change in accounting principle? a. a change in the estimated service life of machinery b. a change from FIFO to LIFO c. a change from straight-line to double-declining-balance d. a change from FIFO to LIFO and a change from straight-line to double-declining-balance

Which of the following is a change in accounting principle? a. a change in the estimated service life of machinery b. a change from FIFO to LIFO c. a change from straight-line to double-declining-balance d. a change from FIFO to LIFO and a change from straight-line to double-declining-balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The statement 'revenue is recognized in the accounting period in which the performance obligation is…

A: The revenue recognition principal state that the the revenue should be recognised in books when the…

Q: 35. Vhich of the following combination of trial balance totals suggest a possible transposition…

A: A transposition error is a common accounting error which is caused by substituting two or more…

Q: When it is impossible to determine whether a change is a change in estimate or a change in policy,…

A: As per relevant accounting rules, accounting policy refers to the type of valuation or method a…

Q: Define a change in estimate and provide an example. When is a change in accounting principle…

A: The answer:

Q: Provide an argument explaining why expenses that were inadvertently omitted in a previous year…

A: The argument against this approach follows AASB 108 (Australian Accounting Standard Board-108) which…

Q: Which of the following accounting changes should be accounted for as a change in estimate O change…

A: An accounting policy is an specific principles, basis rules and conventions applied by an entity…

Q: 25.Adjusting entries a. Bring asset and liability accounts to correct balances. b. Assign revenues…

A: Adjusting entries are generally required and entered at the end of the financial year to ensure that…

Q: Identify if the transaction is Debit or Credit 1. Increase in Materials Inventory 2. Decrease in…

A: The assets and expenses have debit balance and liabilities and revenue have credit balance. The…

Q: 11. In the preparation of the worksheet, if the total credits are greater than total debits under…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: 10. An adjusting entry in relation to estimates will always: a. increase total expenses. b. decrease…

A: Accounting Estimates: An accounting estimate is an approximation of the amount of a business…

Q: Multiple choice: 1. If the adjustment for Supplies used during the period was not made: A. Expense…

A: Adjusting entries are changes made to journal entries that entity has already recorded. The…

Q: TRUE OR FALSE 1. If beginning inventory of prior year is understated, retained earnings is…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Which of the following is NOT an efficiency ratio us financial statement review? OOC Operating…

A: Efficiency ratio how much is the firm efficient and more efficiency mean more profit and more growth…

Q: Prior-period adjustments can arise from

A: Prior period items are expenses or incomes which arise in the current period as a result of errors…

Q: Revenue Expenditures are Select one: O a. Expenses are shown in Balance Sheet O b. No direct effect…

A: Revenue Expenses: Revenue costs are listed in the revenue statement, which is part of the financial…

Q: 10. The following are supporting schedules, except: * A. Summary of adjusting entries B. Cash count…

A: Supporting schedules are the schedules or working that is being attached to the balance sheet and…

Q: 9. Which of the following is a change in accounting principle? a. a change in the estimated service…

A: The Change in accounting principle means that their is change in method of inventory valuation and…

Q: Which of the following entries properly closes a temporary account? Select one: Ⓡ a. Income Summary…

A: Closing entries are the journal entries that are passed at the end of the accounting period to…

Q: [Based on Appendix A] What is the purpose of a worksheet? In a columnar worksheet similar to…

A: A worksheet is the summarized form of accounting information which is made in order to ensure that…

Q: The three types of accounting changes, including error correction, are: Code…

A: Introduction:- The following three types of accounting changes, including error correction as…

Q: What is "The units-of-output method" and "The staright-line method" in accounting? What are their…

A: Companies use tangible long term resources to perform daily operations and create revenue for its…

Q: Multiple choice: 1. Which if the following us correct concerning a T account? A. The left side is…

A: The T-accounts are prepared with posting of journal entries to specific accounts.

Q: What is the purpose of the other adjustments account (OAA)? What types of items increase it or…

A: Answer: As per given - What is the purpose of the accumulated adjustments account (AAA)? What types…

Q: When a company decides to switch from the double-declining balance method to the straight-line…

A: Introduction: Depreciation: Depreciation is an expense to be shown in Income statement. Decreasing…

Q: A list of errors is shown below: Show the effects of the errors on the indicated balance sheet and…

A: solution The answer is presented in the table below

Q: Indicate with the appropriate letter the nature of each adjustment described below: Type of…

A: When a company requires to sacrifice the consistent accounting methods and procedures, to enhance…

Q: As per double entry rules, when will you DEBIT? a. If there is decrease in asset b. If there is…

A: Debit Credit Assets Increase Decrease Liabilities Decrease Increase…

Q: A decrease in an asset account is a: A. Debit entry to the asset account B. Credit entry to the…

A: Assets are the resources that are owned by the entity for the purpose of using them to run the…

Q: e normal balance

A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: A change in depreciation method is a______. Select one: a. change in accounting standard b. change…

A: A change in accounting policy may be necessary to enhance the relevance and reliability of…

Q: Explain the impact on a company's financial statements if it shifts from using the historical cost…

A: The Answer :

Q: Based on a change in economic conditions, Company X has determined that its allowance for doubtful…

A: An accounting change refers to any modification made by a company to the way it records, presents,…

Q: 1. Which of the following disclosures is required for a change from Average costing to FIFO? a.…

A: An alteration in accounting principles, accounting assumptions, or the reporting entity is referred…

Q: Will the financial statements of a company always differ when different choices at the start of the…

A: Denominator-level Capacity Concepts:Denominator-level capacity concept is a term used to depict the…

Q: . Reversing entry should be made for any adjusting entry that? A. Increased an asset account only B.…

A: Reversing entries: Reversing entries are made at the beginning of the accounting period when the…

Q: Name the error which was made under the following circumstances: The purchase of the machinery on…

A: When machinery is purchased on credit . Machinery account is debited. It's wrongly debited to…

Q: 29-Where the correct accounts are used but each item is shown on the wrong side of the account is an…

A: Please see the next step for the solution

Q: Describe the fall of accounting changes.

Q: 7. The following statements are correct, except: Other comprehensive income comprises items of…

A: SOLUTION- FINANCIAL STATEMENT ARE FORMAL RECORDS OF FINANCIAL ACTIVITIES AND POSITION OF A BUSINESS…

Q: mn.3

A: The objective of the question is to identify which of the given scenarios should be reported as a…

Question

. 9. Which of the following is a change in accounting principle? a. a change in the estimated service life of machinery b. a change from FIFO to LIFO c. a change from straight-line to double-declining-balance d. a change from FIFO to LIFO and a change from straight-line to double-declining-balance

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The statement of financial position and the balance sheet are synonyms. Select one: a. False b. True Refers to the recording, presentation, and analysis of manufacturing costs. Select one: a. No correct answer b. Financial Accounting c. Auditing d. Cost Accounting Accounting deals with quantifiable information. Select one: a. True b. False
Q20 Which is the most suitable method based on the concept that profit is the difference between the owner’s equity at two different points in time during the accounting period. a. None of these methods are correct b. First in first out method c. Last in first out method d. Net change method
19) An impairment test is carried out at: Select one: a. Each reporting date O b. Interim balance sheet date C. None of the above d. (a) and (b)
Which of the following is not an example of a change in accounting principle? Multiple Choice A change to the equity method of accounting for investments. A change in the useful life of a depreciable asset. A change from LIFO to FIFO for inventory costing. A change to the full costing method in the extractive industries.
Revenue Expenditures are Select one: a. None of the these b. No direct effect on profit c.Expenses are shown in Balance Sheet d. Short-life and must always be replaced to generate revenue for an accounting period
A ____ will cause Deferred Revenue to decrease. A. Debit B. Credit
If a company captúrales a cost that should have been expensed.... A. Expenses will be overstated and net income will be understated in the years of the error B. Expenses will be understated and net income will be overstated in the year of the error C. Expenses and net income will be understated in the year of the error D. Expenses and net income will be overstated in the year of the error
Q20