Question 1

Which of the following statements is correct?

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The answer of Which of the following statements is correct?
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Question 2

Why does IASB prohibit retrospective treatment of changes in accounting estimates?

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The answer of Why does IASB prohibit retrospective treatment of...

Question 3

All of the following statements are true regarding IASB's guideline that companies must demonstrate change in accounting policy as preferable or as an improvement, except

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The answer of All of the following statements are true...

Question 4

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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The answer of If, at the end of a period,...

Question 5

An example of a correction of an error in previously issued financial statements is a change

Accepted Answer

The correction of an error in previously issued financial statements may arise from a change in the tax assessment related to a prior period. This is because the correction of an error in financial statements is a restatement of previously issued financial statements to correct a material, factual error that occurred in the original statements. A change in the tax assessment related to a prior period will likely affect the financial statements and require a restatement to correct the error. Options A, B, and C represent changes in accounting policies or estimates, which are not considered errors in financial statements.

Question 6

Which of the following is true regarding whether IFRS specifically addresses the accounting and reporting for effects of changes in accounting policies?

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Question 7

Each of the following errors will overstate 2016 net income except

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The answer of Each of the following errors will overstate...

Question 8

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

Accepted Answer

The remaining book value should be depreciated over the remaining life of the asset.

Question 9

The IASB has declared, as part of its conceptual framework, that it will assess the merits of proposed standards

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The answer of The IASB has declared, as part of...

Question 10

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 equity at year end and net income for the year?

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Question 11

Counterbalancing errors do not include

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The answer of Counterbalancing errors do not include
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Question 12

Yee Construction Co.had followed the practice of expensing all materials assigned to a construction job without recognizing any residual inventory.On December 31, 2016, it was determined that residual inventory should be valued at ¥56,000.Of this amount, ¥23,000 arose during the current year.Based on this information, all of the following statements are true regarding the effect on the financial statements to be prepared at the end of 2016 except

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The answer of Yee Construction Co.had followed the practice of...

Question 13

Under IFRS, when a company prepares financial statements on a new basis, how many years of comparative data are reported?

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The answer of Under IFRS, when a company prepares financial...

Quiz 22: Accounting Changes and Error Analysis