Listed below are various types of accounting changes and errors. ________ 1. Change in a plant asset's salvage value. ________ 2. Change due to overstatement of inventory. ________ 3. Change from sum-of-the-years'-digits to straight-line method of depreciation. ________ 4. Change from presenting unconsolidated to consolidated financial statements. ________ 5. Change from LIFO to FIFO inventory method. ________ 6. Change in the rate used to compute warranty costs. ________ 7. Change from an unacceptable accounting principle to an acceptable accounting principle. ________ 8. Change in a patent's amortization period. ________ 9. Change from completed-contract to percentage-of-completion method on construction contracts. ________ 10. Change from FIFO to average-cost inventory method. Instructions For each change or error, indicate how it would be accounted for using the following code letters: a. Accounted for prospectively. b. Accounted for retrospectively. c. Neither of the above.
Listed below are various types of accounting changes and errors. ________ 1. Change in a plant asset's salvage value. ________ 2. Change due to overstatement of inventory. ________ 3. Change from sum-of-the-years'-digits to straight-line method of depreciation. ________ 4. Change from presenting unconsolidated to consolidated financial statements. ________ 5. Change from LIFO to FIFO inventory method. ________ 6. Change in the rate used to compute warranty costs. ________ 7. Change from an unacceptable accounting principle to an acceptable accounting principle. ________ 8. Change in a patent's amortization period. ________ 9. Change from completed-contract to percentage-of-completion method on construction contracts. ________ 10. Change from FIFO to average-cost inventory method. Instructions For each change or error, indicate how it would be accounted for using the following code letters: a. Accounted for prospectively. b. Accounted for retrospectively. c. Neither of the above.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
Section: Chapter Questions
Problem 7CYBK
Related questions
Question
Listed below are various types of accounting changes and errors.
- ________ 1. Change in a plant asset's salvage value.
- ________ 2. Change due to overstatement of inventory.
- ________ 3. Change from sum-of-the-years'-digits to straight-line method of depreciation.
- ________ 4. Change from presenting unconsolidated to consolidated financial statements.
- ________ 5. Change from LIFO to FIFO inventory method.
- ________ 6. Change in the rate used to compute warranty costs.
- ________ 7. Change from an unacceptable accounting principle to an acceptable accounting principle.
- ________ 8. Change in a patent's amortization period.
- ________ 9. Change from completed-contract to percentage-of-completion method on construction contracts.
- ________ 10. Change from FIFO to average-cost inventory method.
Instructions
For each change or error, indicate how it would be accounted for using the following code letters:
a. Accounted for prospectively.
b. Accounted for retrospectively.
c. Neither of the above.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College