Accounting Essay

10957 Words Feb 16th, 2016 44 Pages
CHAPTER 22

ACCOUNTING CHANGES AND ERROR ANALYSIS

TRUE-FALSe—Conceptual

Answer No. Description

F 1. Change in accounting estimate. T 2. Errors in financial statements. F 3. Adoption of a new principle. T 4. Retrospective application of accounting principle. F 5. Reporting cumulative effect of change in principle. T 6. Disclosure requirements for a change in principle. T 7. Indirect effect of an accounting change. T 8. Retrospective application impracticality. F 9. Reporting changes in accounting estimates. T 10. Change in principle vs. change in estimate. F 11. Accounting for change in depreciation method. F 12. Accounting for change in reporting entities. T 13. Example of a change in reporting entities.
…show more content…
Identification of counterbalancing errors.
Multiple Choice—Conceptual (cont.)

Answer No. Description

c 39. Impact of failure to record purchase and count ending inventory. c *40. Conversion from the equity method.

Multiple Choice—Computational

Answer No. Description

b 41. Calculate cumulative effect of a change in depreciation method. b 42. Calculate cumulative effect of a change in depreciation method. c 43. Calculate net income with change in accounting principle with tax effects. a 44. Calculate cumulative effect of accounting change on construction in process. b 45. Calculate cumulative effect of accounting change on retained earnings. d 46. Calculate cumulative effect of a change on retained earnings. b 47. Calculate cumulative effect of a change on retained earnings. c 48. Compute depreciation expense after a change in depreciation methods. b 49. Calculate cumulative effect of a change in inventory methods. c 50. Calculate net income after a change to LIFO method. a 51. Calculate net income with change from FIFO to LIFO. b 52. Calculate depreciation after a change in estimate. a 53. Calculate net income with change in an accounting estimate. a 54. Determine depreciation expense after a change in estimated life. a 55. Compute effect of errors on income before taxes. c 56. Compute effect of errors on retained earnings. d 57. Calculate effect of errors on net income. c 58. Calculate effect of errors on

Related Documents