Final Exam ACCT 410 Ques ons and answers | Updated
RATED A+ | NEW
Which of the following is not one of the three types of accoun ng changes?
a) Change from LIFO to FIFO.
b) Change in repor ng en ty.
c) Change in the es mated useful life of an asset.
d) Correc on of understated deprecia on expense in a prior period.
Correc on of understated deprecia on expanse in a prior period
What approach does the FASB require when accoun ng for changes in accoun ng principle?
a) Cumula ve.
b) Prospec ve.
c) Allowance.
d) Retrospec ve.
Retrospec ve
All of the following are examples of a change in accoun ng principle except a change from:
a) the completed-contract to percentage-of-comple on method of accoun ng for construc on
contracts.
b) the double-declining balance method to the straight-line method of deprecia on.
c) FIFO to average cost inventory pricing.
d) average cost to LIFO inventory pricing.
, The double-declining balance method to the straight-line method of deprecia on
CJP Co. changed its inventory method to LIFO inventory valua on from FIFO. If it is
imprac cable to retrospec vely apply the new method, CJP Co. should
a) account for the change as an adjustment to beginning retained earnings.
b) not restate prior years' income.
c) restate all prior years' income.
d) apply for an excep on from the FASB.
Not restate prior years' income
Which type of accoun ng change is accounted for in current and future periods?
a) Change in accoun ng principle
b) Change in repor ng en ty
c) Change in accoun ng es mate
d) Correc on of an error
Change in accoun ng es mate
Whenever it is impossible to determine whether a change in principle or a change in es mate
has occurred, the change should be considered a:
a) change in es mate.
b) change in accoun ng principle.
c) correc on of an error.
d) counterbalancing error.
Change in es mate
Which of the following describes a change in repor ng en ty?
RATED A+ | NEW
Which of the following is not one of the three types of accoun ng changes?
a) Change from LIFO to FIFO.
b) Change in repor ng en ty.
c) Change in the es mated useful life of an asset.
d) Correc on of understated deprecia on expense in a prior period.
Correc on of understated deprecia on expanse in a prior period
What approach does the FASB require when accoun ng for changes in accoun ng principle?
a) Cumula ve.
b) Prospec ve.
c) Allowance.
d) Retrospec ve.
Retrospec ve
All of the following are examples of a change in accoun ng principle except a change from:
a) the completed-contract to percentage-of-comple on method of accoun ng for construc on
contracts.
b) the double-declining balance method to the straight-line method of deprecia on.
c) FIFO to average cost inventory pricing.
d) average cost to LIFO inventory pricing.
, The double-declining balance method to the straight-line method of deprecia on
CJP Co. changed its inventory method to LIFO inventory valua on from FIFO. If it is
imprac cable to retrospec vely apply the new method, CJP Co. should
a) account for the change as an adjustment to beginning retained earnings.
b) not restate prior years' income.
c) restate all prior years' income.
d) apply for an excep on from the FASB.
Not restate prior years' income
Which type of accoun ng change is accounted for in current and future periods?
a) Change in accoun ng principle
b) Change in repor ng en ty
c) Change in accoun ng es mate
d) Correc on of an error
Change in accoun ng es mate
Whenever it is impossible to determine whether a change in principle or a change in es mate
has occurred, the change should be considered a:
a) change in es mate.
b) change in accoun ng principle.
c) correc on of an error.
d) counterbalancing error.
Change in es mate
Which of the following describes a change in repor ng en ty?
