What is a change in accounting principle that usually should not?
A change in accounting principle that usually should not be reported by revising the financial statements of prior periods is a change from: The weighted-average method to the FIFO method The weighted-average method to the LIFO method FIFO method to the weighted-average method LIFO method to the weighted-average method B.
What is an example of a change in accounting estimate?
A change from the equity method to the cost method to value investments in subsidiaries B. A change in the useful life of a depreciable asset is a change in accounting estimate. Big Merchandisers changed from the FIFO method of costing inventories to the weighted average method during 2018.
What is a fundamental accounting assumption?
Answer: Change in Accounting Principle - A fundamental accounting assumption is that accounting principles are consistently applied. A change in an accounting principles is therefore made only in exceptional circumstances like the following i) If the …
What should be adjusted for when preparing a statement of cash flows?
Select all that apply. a. Changing from LIFO to FIFO b. Forgetting to accrue salary expense d. Using a different depreciation method In preparing the operating activities section of a statement of cash flows using the indirect method, net income should be adjusted for (Select all that apply).
Which of the following is a category of accounting change?
The three types of accounting changes are a change in: - accounting principle. - reporting entity. - accounting estimate.
Which of the following is not a change in accounting principle?
transaction does not constitute a change in accounting principle. You just studied 25 terms!
Which of the following is a routine change in estimate that does not require a disclosure note if the amount is not material?
Which of the following is a routine change in estimate that does not require a disclosure note if the amount is not material? -Change in estimate for uncollectible accounts.
What items must be removed from continuing operations and reported?
- Revenues and expenses are reported in continuing operations, but gains and losses are reported as discontinued operations. - All related revenues, expenses, gains, and losses must be removed from continuing operations.
Which of the following is a change in accounting principle?
The correct answer is D) a change from LIFO to FIFO. Change in the method of inventory costing is considered to be a change in accounting principle....
What is the treatment of a change in accounting policy?
Changes in an accounting policy are applied retrospectively unless this is impracticable or unless another IFRS Standard sets specific transitional provisions. Changes in accounting estimates result from new information or new developments and, accordingly, are not corrections of errors.
Is a change from LIFO to FIFO a change in accounting principle?
A change in accounting principles is a change in a method used, such as using a different depreciation method or switching between LIFO (Last In, First Out) to FIFO (First In, First Out) inventory valuation methods.
Which of the following is an exception to retrospective application of voluntary changes in accounting principle?
An exception to the retrospective application of voluntary changes in accounting principles is when: authoritative literature requires prospective application for a change in accounting methods.
Under which of the following conditions is a statement of comprehensive income not required?
Under which of the following conditions is a statement of comprehensive income not required? When a company has no other comprehensive income items for all years presented.
Which of the following is not reported as part of income from continuing operations?
One of the components of net income is operating income from continuing operations. Continuing operations include net revenues and their related costs and expenses from ongoing operations. Discontinued operations, extraordinary items and unusual items are excluded from continuing operations and reported separately.
What is the accounting treatment for discontinued operations?
Key Takeaways. Discontinued operations is an accounting term for parts of a firm's operations that have been divested or shut down. They are reported on the income statement as a separate entry from continuing operations.
Which of the following elements must be reported as part of discontinued operations when the discontinued component is sold before the end of the reporting period?
When the discontinued component is sold before the end of the reporting period, the reported income effects of the discontinued operation will include what two elements? Income or loss from operations of the component from the beginning of the reporting period to the disposal date.
What is change in depreciation method?
A change in depreciation method requires a disclosure of why the new method is preferred, and the others do not.Fill in the blanks to complete the sentence. A change in the residual value of a depreciable asset is treated as a change in accounting. estimate.
Is income from continuing operations true or false?
Income from continuing operations. True or false: The single-step and the multiple-step formats are most commonly used in income statement preparation; however, there are no specific standards on how income from continuing operations must be displayed.