Part I Choose the correct statement(s) regarding changes in accounting estimates: Changes in accounting estimates generally...

Part I

Choose the correct statement(s) regarding changes in accounting estimates:

Changes in accounting estimates generally result from the availability of new information.

Disclosure of current period effects is generally required for changes in estimate.

A change in accounting principle that is inseparable from a change in estimate is accounted for prospectively, but with footnote disclosure of retrospective effects.

Multiple Choice

A. II and III only.

B. I only.

C. III only.

D. I and II only.

Part II

During 2018, Creek Co. determined that an insurance premium paid and entirely expensed in 2017 was for the period January 1, 2017 through January 1, 2019. How should Creek classify and treat the above transaction on its financial statements?

Multiple Choice

A. Creek Co. should classify the transaction as a correction of an accounting error and restate its financial statements retroactively.

B. Creek Co. should classify the transaction as a change in accounting principle and restate its financial statements retroactively.

C. Creek Co. should classify the transaction as a correction of an accounting error and make no retroactive adjustments.

D. Creek Co. should classify the transactions as a change in accounting principle and make no retroactive adjustments.

Part III

The correction of a mathematical error in the calculation of prior years’ depreciation should be:

Multiple Choice

A. Recorded as a prior-period adjustment.

B. Corrected with an adjustment to the current period’s depreciation expense.

C. Recorded as a change in accounting estimate.

D. Recorded as a change in accounting principle.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Which of the following statement(s) regarding the exchange-traded funds (ETF) is (are) correct? I. Individual ETF...

Which of the following statement(s) regarding the exchange-traded funds (ETF) is (are) correct? I. Individual ETF shares are traded on the exchanges II. An authorized participant can redeem ETF shares directly from the ETF provider. III. The “redemption-in-kind” process helps ETF(s) to maximize tax efficiency. A. Only I B. Only II C. I and III D. I and II E. I, II, and III

Select the correct statement(s) regarding network physical and logical topologies.

Select the correct statement(s) regarding network physical and logical topologies. a. a network’s physical topology must always be the same as its logical one b. the physical topology addresses how devices are connected, while a logical topology addresses how devices actually communicate to one another c. only guided networks have physical and logical topologies d. b and c are correct statements Select the correct statement(s) regarding shared Ethernet LANs. ...

"Changes in Accounting Principles and Changes in Accounting Estimates" Use the Internet or Strayer Library to...

"Changes in Accounting Principles and Changes in Accounting Estimates" Use the Internet or Strayer Library to research a company that had a change in accounting principles within the past five (5) years. Discuss the accounting principles that the identified company changed and explain the major reasons why the company changed accounting principles. Give your opinion on whether you believe the change in accounting principles was motivated by an attempt to provide more useful information or to make financial results look...

Why are there differences in presentation for changes in estimates and changes in accounting principle? Discuss...

Why are there differences in presentation for changes in estimates and changes in accounting principle? Discuss the need for disclosures of either one and what information would typically be disclosed?

Choose the correct statement(s) about the values of the quantum numbers according to the Quantum Model...

Choose the correct statement(s) about the values of the quantum numbers according to the Quantum Model of the Hydrogen Atom: The maximum allowed value of the orbital quantum number is (n-1). The allowed values of the principle quantum number are 1, 2, 3, ... The allowed values of the orbital quantum number are 1, 2, 3, ... , (n-1). The allowed values of the orbital magnetic quantum number are - l, - l +1, ..., 0, ..., l -1, l.

Explain the accounting procedures for changes in accounting policies and estimates and the correction of errors....

Explain the accounting procedures for changes in accounting policies and estimates and the correction of errors. (please do not write back word for word that you find on the internet, summarize or put in your own words)

Writing Assignment - Part I Choose an example of a Change in Accounting principles. Write a...

Writing Assignment - Part I Choose an example of a Change in Accounting principles. Write a statement paper on how this change would affect the financial statements of a company as they adopt the new principle. Prepare this written statement as if to the Board of Directors of your company. Writing Assignment - Part II Your CEO has inquired about the differences between the direct method and the indirect method of presenting the statement of cash flows. Prepare a memo...

Choose the correct frequency for the following statements. Statement A...

Choose the correct frequency for the following statements. Statement A sample of a mouse population has a frequency of 0.18 for the dominant allele for black hair coat (B). A sample of a mouse population has a frequency of 0.32 for heterozygote coat colour individuals (Bb). A sample of a mouse population has a frequency of 0.48 for white coat colour individuals....

Which of the following is/are correct regarding interest rates? Choose all the correct answers. a. Borrowers’...

Which of the following is/are correct regarding interest rates? Choose all the correct answers. a. Borrowers’ preference for long duration and lenders’ preference for short duration causes the term premium to be positive. b. Zero-coupon bonds are less sensitive to interest rate changes compared to coupon bonds with the same time to maturity. c. The yield curve is usually flat. d. Bonds with greater default risk typically trade at lower yield-to-maturities. e. An inverted yield curve serves as a negative...

Which of the following statement(s) is correct?

Which of the following statement(s) is correct?Cash flows are conventional when there are no cash inflows prior to a cash outflow.In terms of shareholder wealth maximization in the context of mutually exclusive projects, the project with the higher IRR is not necessarily better than the project with the lower IRR.Financing matters for valuation, but is typically ignored in determining cash flows in capital budgeting.a. All three are falseb. Only 1. is correctc. All three are correctd. Only 2. is correcte....

Subjects