Which of the following is accounted for as a change in accounting policy? A. A change in the estimated useful life of property, plant and equipment B. A change from cash basis to accrual basis of accounting C. A change from expensing immaterial expenditures to deferring and amortizing them when material. D. A change in inventory valuation from FIFO to average method

Q: Which of the following statements regarding accounting change is correct? a. Change in depreciation…

A: Accounting changes means when there is some change in the process and methodologies related to…

Q: Which should be subtracted from the net income when using the indirect method? A. Loss on sale of…

A: A cash flow statement is a financial statement that summarizes the cash and cash equivalents…

Q: How should the following changes be treated, according to PAS 8? I. A change is to be made in the…

A: According to PAS 8 a change   is   to   be   made   in   the   method   of   calculating   the…

Q: An example of a correction of an error in previously issued financial statements is a change…

A: A correction of an error in financial reporting refers to the rectification of a material mistake or…

Q: Explain is a change in depreciation method a change in accounting principle, or is it a change in…

A: According to the Accounting Standard 1-  the change in the method of depreciation is a change in the…

Q: Which of the following would NOT be reflected in the income statement?

A: Income statement- it is a part of financial statements prepared by the company that shows the…

Q: Which is a change in accounting policy? A. The initial adoption of an accounting policy to carry…

A: Accounting policy: It refers to the rule, practices, policies, conventions and rules that are used…

Q: A change from cash basis to accrual basis should be reported A. Retroactively as a correction of…

A: Cash basis refers to the accounting of the transactions as and when the cash is received. Whereas…

Q: a correction in the calculation of earnings per share of a prior period   a material difference…

A: Prior period adjustments are adjustments made to periods that are not current but have already been…

Q: If the going concern assumption is not made in accounting, discuss the differences in the amounts…

A: Financial statement:   A formal record of business transactions that record, analyse, and summarize…

Q: Why are assets revalued and liabilities reassessed at the time of change in profit sharing ratio?

A: Meaning of Revaluation of AssetsA revaluation of assets is an action that may be required to…

Q: A change in accounting policy requires what kind of adjustment to the financial statements? A.…

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting…

Q: value is established on the bases of accepted accounting procedures. value is the amount that could…

A: Solution Concept Book value is the value that appears on the books of accounts . it is as per the…

Q: Discuss how, in choosing the accounting methods below, the following ratios can be affected – rate…

A: Answer: •The return on assets shows the percentage of how profitable a company's assets are in…

Q: Which of the following requires an adjustment to the opening balance of retained earnings in the…

A: The term "retrospective effect" refers to the application of a change in principle to financial…

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: Which of the following is used when computing for the accounting rate of return (ARR)? a. Income…

A: The accounting rate of return is the average net income an asset is expected to generate on the…

Q: The interim period is viewed as an integral part of the annual accounting period. b. The interim…

A: The correct option is (a) The interim period is viewed as an integral part of the annual accounting…

Q: In accounting, which statement accurately reflects the Historical Cost Accounting concept and its…

A: The concept of historical cost accounting uses the original purchase prices of assets and…

Q: Which of the following is an assumption made in the preparation of the financial statements?

A: Which of the following is an assumption made in the preparation of the financial statements? Answer…

Q: Which of the following is not an example of a change in accounting principle? Multiple Choice A…

A: You should change an accounting principle only when it is necessary to use an accounting framework…

Q: 5. The following items affect the retained earnings account, except Group of answer choices a. net…

A: Retained earnings is the part of stockholders' equity. It is the part of income set aside to be…

Q: Match the statements below with the accounting assumption, characteristic, or principle to which the…

A: Introduction: Accounting: Accounting is an art of recording , classifying , summarizing ,…

Q: While calculating operating profit which will not be added back to net profit a. Preliminary…

A: Solution:- While calculating operating profit the following item will not be added back to net…

Q: Generally accepted methods of accounting for a change in accounting principle include O including…

A: Generally accepted methods of accounting for a change in accounting principle include "Restating…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.