ACCOUNTING CHANGES AND ERROR ANALYSIS TRUE-FALSeConceptual 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.

F

14.

Accounting error vs. change in estimate.

T

15.

Accounting for corrections of errors.

T

16.

New principle created by FASB standard.

F

17.

Balance sheet errors.

F

18.

Definition of counterbalancing errors.

T

19.

Accounting for counterbalancing errors.

T

20.

Correcting entries for noncounterbalancing errors. Multiple ChoiceConceptual Answer

No.

Description

b

21.

Accounting changes and consistency concept.

b

22.

Identify changes in accounting principle.

c

23.

Identify a non-retrospective change.

d

24.

Identify a change in accounting principle.

a

25.

Entry to record a change in depreciation methods.

c

26.

Disclosures required for a change in depreciation methods.

c

27.

Change from percentage-of-completion to completed-contracts.

d

28.

Disclosures required for a change from LIFO to FIFO.

b

29.

Change from FIFO to LIFO.

c

30.

Change in accounting estimate.

a

31.

Change in accounting estimate.

b

32.

Identify a change in accounting estimate.

b

33.

Change in accounting estimate.

c

34.

Identify a change in accounting estimate.

d

35.

Identify a change in reporting entity.

c

36.

Retroactive reporting a change in reporting entity.

c

37.

Identify a correction of an error.

b

38.

Identification of counterbalancing errors. Multiple ChoiceConceptual (cont.) Answer

No.

Description

c

39.

Impact of failure to record purchase and count ending inventory.

c

40.

Impact of failure to record purchase and count ending inventory. Multiple ChoiceComputational 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.

d

44.

Calculate cumulative effect of accounting change.

c

45.

Calculate depreciation expense after change in accounting principle.

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 working capital.

c

59.

Calculate effect of errors on retained earnings.

a

60.

Effect of errors on income and retained earnings.

a

61.

Calculate effect of errors on net income.

b

62.

Calculate effect of errors on retained earnings.

c

63.

Calculate effect of errors on working capital.

d

64.

Determine cumulative effect of error on income statement.

c

65.

Determine the understatement of retained earnings.

a

66.

Calculate effect of error on net income.

c

67.

Compute effect of error on retained earnings. Multiple ChoiceCPA Adapted Answer

No.

Description

b

68.

Identify a change in accounting principle.

c

69....

Continue Reading
Please join StudyMode to read the full document