Which of the following statements is correct? a. prior year statements should always be restated for changes in accounting estimates. b. changes in accounting policy are always handled in the current or prospective period. C. correction of prior period error should be presented as an adjustment on the current income statement. d. a change from the deferral and amortization method to the immediate recognition method of accounting for defined benefit pension plans should be treated as a change in accounting policy.
Which of the following statements is correct? a. prior year statements should always be restated for changes in accounting estimates. b. changes in accounting policy are always handled in the current or prospective period. C. correction of prior period error should be presented as an adjustment on the current income statement. d. a change from the deferral and amortization method to the immediate recognition method of accounting for defined benefit pension plans should be treated as a change in accounting policy.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter17: Other Services Provided By Audit Firms
Section: Chapter Questions
Problem 20MCQ
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![Which of the following statements is correct?
a. prior year statements should always be
restated for changes in accounting estimates.
b. changes in accounting policy are always
handled in the current or prospective period.
C. correction of prior period error should be
presented as an adjustment on the current
income statement.
d. a change from the deferral and
amortization method to the immediate
recognition method of accounting for defined
benefit pension plans should be treated as a
change in accounting policy.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F498925c6-5419-481d-b91c-14e6e13463ae%2Fea1f4369-8213-416a-8f7c-b08a1cc79759%2F3xllnhl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Which of the following statements is correct?
a. prior year statements should always be
restated for changes in accounting estimates.
b. changes in accounting policy are always
handled in the current or prospective period.
C. correction of prior period error should be
presented as an adjustment on the current
income statement.
d. a change from the deferral and
amortization method to the immediate
recognition method of accounting for defined
benefit pension plans should be treated as a
change in accounting policy.
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