Accounting

John Pickens writes mystery novels. His publisher pays him royalties for books sold each year. He is ...

John Pickens writes mystery novels. His publisher pays him royalties for books sold each year. He is ...

John Pickens writes mystery novels. His publisher pays him royalties for books sold each year. He is paid royalties for the first half of the year on September 30 and the second half of the year on March 31 of the following year. He received $42,000

SSASSY   98   2 Replies

SSASSY

The State of Alabama filed suit against Edwards Chemical Company for violations of water pollution ...

The State of Alabama filed suit against Edwards Chemical Company for violations of water pollution ...

The State of Alabama filed suit against Edwards Chemical Company for violations of water pollution laws in 2015. During 2015, the company accrued a $300,000 loss for litigation. At the end of 2016, Edwards was able to settle with the State for $245,0

calebmullins201   99   1 Reply

pie

Brown Furniture Company decided to go after the younger market to create a newer customer base. In ...

Brown Furniture Company decided to go after the younger market to create a newer customer base. In ...

Brown Furniture Company decided to go after the younger market to create a newer customer base. In doing so, Ms. Brown offered a liberal credit policy and estimated she would have a 5% bad debt expense.  In 2016, sales under this promotion were $600,

moeMoeMoooo   48   3 Replies

chrism004cc

John Pickens writes mystery novels. His publisher pays him royalties for books sold each year. He is ...

John Pickens writes mystery novels. His publisher pays him royalties for books sold each year. He is ...

John Pickens writes mystery novels. His publisher pays him royalties for books sold each year. He is paid royalties for the first half of the year on September 30 and the second half of the year on March 31 of the following year. He received $42,000

Terabear   123   1 Reply

batesmegan1995

For which one of the following changes is it appropriate to use the prospective method?

For which one of the following changes is it appropriate to use the prospective method?

For which one of the following changes is it appropriate to use the prospective method?
A) change in principle
B) change in entity
C) correction of error
D) change in estimate

kAw   24   2 Replies

kAw

Judgments are important in determining which type of estimates used by accountants?

Judgments are important in determining which type of estimates used by accountants?

Judgments are important in determining which type of estimates used by accountants?
A) bad debt expense
B) earnings per share
C) net income
D) computation of gains and losses

KatharinaR   21   2 Replies

KatharinaR

Which of the following is not an estimate that might be revised as a natural part of the accounting process?

Which of the following is not an estimate that might be revised as a natural part of the accounting process?

Which of the following is not an estimate that might be revised as a natural part of the accounting process?
A) salary expense
B) bad debt expense
C) depreciation expense
D) pensions

mik1104   26   3 Replies

fgarza2146

Disclosures are required for all accounting estimates made in normal operations.

Disclosures are required for all accounting estimates made in normal operations.

Disclosures are required for all accounting estimates made in normal operations.
[True or False]

kAw   36   1 Reply

kh540941

Prior years financial statement are affected by changes in material accounting estimates.

Prior years financial statement are affected by changes in material accounting estimates.

Prior years financial statement are affected by changes in material accounting estimates.
[True or False]

krishna2018   45   2 Replies

krishna2018

If a company has recorded a liability for a lawsuit, and the amount of the settlement is more than ...

If a company has recorded a liability for a lawsuit, and the amount of the settlement is more than ...

If a company has recorded a liability for a lawsuit, and the amount of the settlement is more than the provision in the liability, it must consider this an error and retrospectively correct it.
[True or False]

KatharinaR   17   3 Replies

Turboturner

Changes in methods of depreciation are changes in estimates effected by changes in accounting ...

Changes in methods of depreciation are changes in estimates effected by changes in accounting ...

Changes in methods of depreciation are changes in estimates effected by changes in accounting principles and are handled prospectively.
[True or False]

sora   31   2 Replies

sora

Georgio, Inc. decided to move its business from its current location to another larger plant. ...

Georgio, Inc. decided to move its business from its current location to another larger plant. ...

Georgio, Inc. decided to move its business from its current location to another larger plant.  Management should examine the salvage value of the building in the future and the change in the useful life to see if a change in the depreciation of the c

TheFulcan   27   2 Replies

TheFulcan

Changes in accounting principles may be handled prospectively if insufficient information is ...

Changes in accounting principles may be handled prospectively if insufficient information is ...

Changes in accounting principles may be handled prospectively if insufficient information is available to properly account for the change.
[True or False]

hkk   54   2 Replies

hkk

Changes in depreciation methods are changes in accounting principles handled retrospectively.

Changes in depreciation methods are changes in accounting principles handled retrospectively.

Changes in depreciation methods are changes in accounting principles handled retrospectively.
[True or False]

mkendrick08   24   2 Replies

mkendrick08

Changes in amortization, depletion, and depreciation effected by a change in accounting principle ...

Changes in amortization, depletion, and depreciation effected by a change in accounting principle ...

Changes in amortization, depletion, and depreciation effected by a change in accounting principle are are handled prospectively.
[True or False]

Nakeiat   45   2 Replies

Nakeiat

Johnston Controls began operations in 2014 using FIFO inventory methods. In 2015, management ...

Johnston Controls began operations in 2014 using FIFO inventory methods. In 2015, management ...

Johnston Controls began operations in 2014 using FIFO inventory methods.  In 2015, management decided they should have chosen to use LIFO, as it more accurately reflects income. The beginning 2015 inventory using FIFO was $100,000.  Under the LIFO me

sarah963   23   2 Replies

sarah963

Energy, Inc began operations in 2015 using LIFO inventory methods. In 2016, management decided they ...

Energy, Inc began operations in 2015 using LIFO inventory methods. In 2016, management decided they ...

Energy, Inc began operations in 2015 using LIFO inventory methods.  In 2016, management decided they should have chosen FIFO.  The beginning inventory for 2016 using LIFO was $128,000.  Under the FIFO method, the beginning inventory would have been $

liz_08   23   2 Replies

liz_08

Johnston Controls began operation in 2014 using FIFO inventory methods. In 2015, management decided ...

Johnston Controls began operation in 2014 using FIFO inventory methods. In 2015, management decided ...

Johnston Controls began operation in 2014 using FIFO inventory methods.  In 2015, management decided they should have chosen LIFO to more accurately portray financial position and performance. The beginning 2015 inventory using FIFO was $200,000.  Un

Miche   34   3 Replies

billybob888

When a company makes a change in an accounting principle, IFRS additionally requires a company to ...

When a company makes a change in an accounting principle, IFRS additionally requires a company to ...

When a company makes a change in an accounting principle, IFRS additionally requires a company to report ________.
A) three years of all financial statements
B) two years of all financial statements
C) two years of balance sheets and two years of

skiddd   41   2 Replies

skiddd

When a firm decides to change an accounting principle, but does not have sufficient information to ...

When a firm decides to change an accounting principle, but does not have sufficient information to ...

When a firm decides to change an accounting principle, but does not have sufficient information to use the retrospective approach, it may ________.
A) estimate the numbers to do so
B) declare the change to be impractical
C) be forced to abandon th

vsisto   68   3 Replies

hpascoe

Which one of the following might be affected by a change in revenue recognition requiring a ...

Which one of the following might be affected by a change in revenue recognition requiring a ...

Which one of the following might be affected by a change in revenue recognition requiring a prospective change?
A) retained earnings
B) management compensation
C) unearned revenue
D) deferred taxes

lover567   21   3 Replies

Jslemin

Which one of the following would not be affected by a change in revenue recognition requiring a ...

Which one of the following would not be affected by a change in revenue recognition requiring a ...

Which one of the following would not be affected by a change in revenue recognition requiring a retrospective change?
A) cash
B) revenue
C) unearned revenue
D) deferred taxes

Cookiemonster   30   3 Replies

hnm123

A firm may choose to apply indirect effects of an accounting principle change either prospectively ...

A firm may choose to apply indirect effects of an accounting principle change either prospectively ...

A firm may choose to apply indirect effects of an accounting principle change either prospectively or retrospectively.
[True or False]

csaxton   40   1 Reply

hmonier

Indirect effects of changes in an accounting principle are those that change current or future cash ...

Indirect effects of changes in an accounting principle are those that change current or future cash ...

Indirect effects of changes in an accounting principle are those that change current or future cash flows and are applied prospectively.
[True or False]

blazingferrai   46   2 Replies

blazingferrai

Direct effects of changes in an accounting principle are those necessary to implement the change and ...

Direct effects of changes in an accounting principle are those necessary to implement the change and ...

Direct effects of changes in an accounting principle are those necessary to implement the change and are applied retrospectively.
[True or False]

Terabear   36   2 Replies

Terabear

If a mandatory accounting change requires too much work for a firm to use the retrospective ...

If a mandatory accounting change requires too much work for a firm to use the retrospective ...

If a mandatory accounting change requires too much work for a firm to use the retrospective approach, then the firm can choose to use the prospective approach.
[True or False]

trangldtruong   41   2 Replies

trangldtruong

Mandatory accounting changes require retrospective application of the new accounting standard.

Mandatory accounting changes require retrospective application of the new accounting standard.

Mandatory accounting changes require retrospective application of the new accounting standard.
[True or False]

MichaelJoult   37   2 Replies

MichaelJoult

When making a voluntary accounting change, a firm must explain the justification for the change on ...

When making a voluntary accounting change, a firm must explain the justification for the change on ...

When making a voluntary accounting change, a firm must explain the justification for the change on the basis that it more accurately portrays its financial position and performance.
[True or False]

bunbun11   62   3 Replies

my2redeyes

Changes in accounting principles can be mandatory or voluntary.

Changes in accounting principles can be mandatory or voluntary.

Changes in accounting principles can be mandatory or voluntary.
[True or False]

alockridge95   30   2 Replies

alockridge95

Describe the two methods for reporting accounting changes and how they differ.

Describe the two methods for reporting accounting changes and how they differ.

Describe the two methods for reporting accounting changes and how they differ.

KatharinaR   28   2 Replies

KatharinaR

Special use prospective financial statements are intended for

Special use prospective financial statements are intended for

Special use prospective financial statements are intended for
A) internal management only.
B) any third party.
C) third parties with whom negotiations are being conducted directly by the responsible party.
D) the relevant provinci

npeelman   88   2 Replies

npeelman

Financial information prepared using one or more assumptions (hypotheses) that do not necessarily ...

Financial information prepared using one or more assumptions (hypotheses) that do not necessarily ...

Financial information prepared using one or more assumptions (hypotheses) that do not necessarily reflect the most likely course of action in management's judgment is called a(n)
A) forecast.
B) projection.
C) prospective financia

npeelman   70   2 Replies

npeelman

A financial statement review emphasizes four broad areas, one of which is to "Perform ...

A financial statement review emphasizes four broad areas, one of which is to "Perform ...

A financial statement review emphasizes four broad areas, one of which is to "Perform analytical procedures." State the other three areas emphasized.

npeelman   52   2 Replies

npeelman

Which one of the following procedures would most likely be conducted by an accountant during a ...

Which one of the following procedures would most likely be conducted by an accountant during a ...

Which one of the following procedures would most likely be conducted by an accountant during a compilation engagement?
A) Enquire of management with respect to the purpose of new capital assets.
B) Compare gross profit on a year-by-year bas

npeelman   41   2 Replies

npeelman

The statement that "nothing came to our attention which would indicate that these statements ...

The statement that "nothing came to our attention which would indicate that these statements ...

The statement that "nothing came to our attention which would indicate that these statements are not fairly presented" expresses which of the following?
A) disclaimer of an opinion
B) negative assurance
C) negative confirmati

npeelman   57   2 Replies

npeelman

When is negative assurance used during a review engagement?

When is negative assurance used during a review engagement?

When is negative assurance used during a review engagement?
A) when the standards applicable to a review engagement have been met
B) if a qualification is required during the review engagement
C) when the criteria associated with a rev

npeelman   90   2 Replies

npeelman

As part of the conduct of a review engagement, which of the following procedures would be ...

As part of the conduct of a review engagement, which of the following procedures would be ...

As part of the conduct of a review engagement, which of the following procedures would be appropriate for assessing the ending value of accounts payable?
A) sending zero balance confirmations to frequently used suppliers
B) use of negative

npeelman   56   2 Replies

npeelman

As part of the conduct of a review engagement, which of the following would be a typical procedure ...

As part of the conduct of a review engagement, which of the following would be a typical procedure ...

As part of the conduct of a review engagement, which of the following would be a typical procedure used for the assessment of the ending accounts receivable balance?
A) circularization of positive confirmations to all balances exceeding material

npeelman   46   2 Replies

npeelman

Which of the following would be required in a compilation?

Which of the following would be required in a compilation?

Which of the following would be required in a compilation?
A) An understanding between the client and the accountant for the services to be provided
B) A formal engagement letter signed by the client
C) Management's acknowledgemen

npeelman   47   2 Replies

npeelman

Outline the three performance standards of CICA Handbook section 5025, "Standards for ...

Outline the three performance standards of CICA Handbook section 5025, "Standards for ...

Outline the three performance standards of CICA Handbook section 5025, "Standards for Assurance Engagements."

npeelman   95   2 Replies

npeelman