Which of the following should be reported as a prior period adjustment? Change in Accounting Principle = Yes; Error Correction = No Change in Accounting Principle = No; Change in Accounting Principle = Yes; Change in Accounting Principle = No; Error Correction = Yes Error Correction = Yes Error Correction = No

Which of the following should be reported as a prior period adjustment? Change in Accounting Principle = Yes; Error Correction = No Change in Accounting Principle = No; Change in Accounting Principle = Yes; Change in Accounting Principle = No; Error Correction = Yes Error Correction = Yes Error Correction = No

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 17Q: Sometimes financial statements contain errors. What type of liabilities may need correction as a...

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Similar questions

Prior-period adjustments can arise from a change in accounting principle. a change in accounting entity. a correction of an error made in a prior period. all of these choices.
Why is retrospective treatment of changes in accounting estimatedprohibited? A. Changes in estimate are normally corrections and adjustments which are the natural result of the accounting process B. The retrospective treatment for any type of presentation is not allowed C. Retrospective treatment of changes in accounting estimate is required by IFRS D. The IFRS is silent on the issue
Sometimes financial statements contain errors. What type of liabilities may need correction as a prior period adjustment?
How is a correction of an accounting error made?
Which of the following is true regarding whether IFRS specifically addresses the accounting and reporting for effects of changes in accounting policies? Direct Effects Indirect Effects a. Yes Yes b. No No c. No Yes d. Yes No
Which of the following is not one of the approaches for reporting accounting changes? The change approach. O The retrospective approach. The prospective approach. O All of these answer choices are approaches for reporting accounting changes.
The use of the cumulative effect method to account for a change in accounting principle violates the accounting concept of a. Materiality b. Objectivity c. Consistency d. Conservatism
Which of the following statements regarding accounting change is correct? a. Change in depreciation method is accounted for as a change in accounting policy. b. Change in accounting estimate is accounted for in current and future periods. c. The categories of accounting changes are change in accounting estimate and correction of prior period error. d. A switch from the direct write-off method to the allowance method of accounting for bad debts is an example of change in accounting policy.
Which of the following accounting changes is always accounted for prospectively? correction of an error change in accounting estimate change in accounting principle change in reporting entity
Explain the concept of hindsight in relation to changes in accounting estimates and errors. How should the use of hindsight be balanced with the requirement to make estimates based on information available at the time?
Kindly provide the correct answers for the following items.
Distinguish between termporary differences and permanent differences in Accounting? Provide an example of each.