An entity changed from an accounting principle that is not generally accepted to one that is generally accepted

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An entity changed from an accounting principle that is not generally accepted to one that is generally accepted. The effect of the change should be reported, net of tax, in the current
a. Retained earnings statement as an adjustment of the opening balance
b. Retained earnings statement after net income but before dividends
c. Income statement after extraordinary items
d. Income statement after income from continuing operations
 

 

The loss on disposal of a discontinued component should
a. Exclude associated employee relocation cost
b. Exclude operating loss for the period.
c. Include associated employee termination cost
d. Exclude associated lease cancelation cost

 

 

In which of the following situations should an entity report a prior period adjustment?
a. The correction of a mathematical error in the calculation of prior years' depreciation
b. A change in the estimated useful life of property, plant and equipment purchased in prior years
c. A switch from the straight line to double declining balance method of depreciation
d. The scrapping of an asset prior to the end of the expected useful life