question archive An entity changed from an accounting principle that is not generally accepted to one that is generally accepted
An entity changed from an accounting principle that is not generally accepted to one that is generally accepted
Subject:AccountingPrice:9.82 Bought3
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
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Step 1
Part 1
The correct answer is option D
Income statement after income from continuing operations
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 Income statement after income from continuing operations.
Step-by-step explanation
Step 1
Part 1
The correct answer is option D
Income statement after income from continuing operations
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 Income statement after income from continuing operations.
Part 2
The correct answer is option C
Include associated employee termination cost
The loss on disposal of a discontinued component should, Include associated employee termination cost.
Part 3
The correct answer is option A
The correction of a mathematical error in the calculation of prior years' depreciation
The correction of a mathematical error in the calculation of prior years' depreciation, situations should be reported by an entity reports prior to period adjustments.
