| Read 'Chapter 0: Course Material' & answer the following question(s): |
| 1. | Accounting changes are often made and the monetary impact is reflected in the financial statements of a company even though, in theory, this may be a violation of the accounting concept of |
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| 2. | A transaction that is unusual in nature and infrequent in occurrence should be reported separately as a component of income |
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| 3. | Which of the following is NOT treated as a change in accounting principle? |
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| 4. | Which of the following is NOT a retrospective-type accounting change? |
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| 5. | Which of the following is accounted for as a change in accounting principle? |
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| 6. | A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a |
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| 7. | Which of the following disclosures is required for a change from sum-of-the-years-digits to straight-line? |
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| 8. | A company changes from percentage-of-completion to completed-contract, which is the method used for tax purposes. The entry to record this change should include a |
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| 9. | Which of the following disclosures is required for a change from LIFO to FIFO? |
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| 10. | Stone Company changed its method of pricing inventories from FIFO to LIFO. What type of accounting change does this represent? |
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| 11. | Which type of accounting change should always be accounted for in current and future periods? |
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| 12. | When a company decides to switch from the double-declining balance method to the straight-line method, this change should be handled as a |
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| 13. | The estimated life of a building that has been depreciated 30 years of an originally estimated life of 50 years has been revised to a remaining life of 10 years. Based on this information, the accountant should |
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| 14. | Which of the following statements is correct? |
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| 15. | Which of the following describes a change in reporting entity? |
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| 16. | Presenting consolidated financial statements this year when statements of individual companies were presented last year is |
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| 17. | An example of a correction of an error in previously issued financial statements is a change |
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| 18. | Counterbalancing errors do NOT include |
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| 19. | A company using a perpetual inventory system neglected to record a purchase of merchandise on account at year-end. This merchandise was omitted from the year-end physical count. How will these errors affect assets, liabilities, and stockholders' equity at year-end and net income for the year? |
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| 20. | If, at the end of a period, a company erroneously excluded some goods from its ending inventory and also erroneously did not record the purchase of these goods in its accounting records, these errors would cause |
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| 21. | How should the effect of a change in accounting estimate be accounted for? |
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| 22. | On January 1, 2X12, Frost Corp. changed its inventory method to FIFO from LIFO for both financial and income tax reporting purposes. The change resulted in an $800,000 increase in the January 1, 2X12 inventory. Assume that the income tax rate for all years is 30%. The cumulative effect of the accounting change should be reported by Frost in its 2X12 |
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