Kindly provide the correct answers for the following items. Question 10Which of the following should be reported when an entity changed the expected service life of a depreciable property?(A) cumulative effect of change in accounting policyB proforma effect of retroactive applicationDan accounting change that should be reported in the period of change and future periodsprior period errorQuestion 11Which event after the end of reporting period would generally require disclosure?A retirement of key management personnelsettlement of obligation when the event that gave rise to the litigation occurred in a period periodBstrike of employeesD issue of a large amount of ordinary sharesQuestion 12Events that occur after the current year-end but before the financial statements are issued and affect the realizability of accounts receivable should be:A discussed in the management annual report.B disclosed in the notes to financial statements.DC used to record an adjustment to bad debt expense.an adjustment directly to retained earnings. Question 7This means correcting the recognition, measurement and disclosure of amounts of elements of financial statements as if a prior period error had never occured.retrospective applicationBretrospective restatementprospective applicationD prospective restatementQuestion 8If it is impracticable to determine the cumulative effect of an accounting change to any of the prior periods, the accounting change should be accounted for:as a prior period errorBon a prospective basisas a cumulative effect of change in the income statementas an adjustment of retained earningsQuestion 9What is the characteristic of a change in accounting estimate?A) It usually need not be disclosed.B It does not affect the financial statements of prior period.It should be reported through the restatement of the financial statements.D If makes necessary the reporting of proforma amounts.

Retrospective accounting changes involve adjusting the financial statements of previous periods as…

Question 10 Which of the following should be reported when an entity changed the expected service life of a depreciable property? A cumulative effect of change in accounting policy B proforma effect of retroactive application prior period error D an accounting change that should be reported in the period of change and future periods Question 11 Which event after the end of reporting period would generally require disclosure? (A) retirement of key management personnel B settlement of obligation when the event that gave rise to the litigation occurred in a period period (c) strike of employees D issue of a large amount of ordinary shares Question 12 Events that occur after the current year-end but before the financial statements are issued and affect the realizability of accounts receival discussed in the management annual report. (B) disclosed in the notes to financial statements. Cused to record an adjustment to bad debt expense. an adjustment directly to retained earnings.

Question 10 Which of the following should be reported when an entity changed the expected service life of a depreciable property? A cumulative effect of change in accounting policy B proforma effect of retroactive application prior period error D an accounting change that should be reported in the period of change and future periods Question 11 Which event after the end of reporting period would generally require disclosure? (A) retirement of key management personnel B settlement of obligation when the event that gave rise to the litigation occurred in a period period (c) strike of employees D issue of a large amount of ordinary shares Question 12 Events that occur after the current year-end but before the financial statements are issued and affect the realizability of accounts receival discussed in the management annual report. (B) disclosed in the notes to financial statements. Cused to record an adjustment to bad debt expense. an adjustment directly to retained earnings.

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

Chapter7: Planning The Audit: Identifying, Assessing, And Responding To The Risk Of Material Misstatement

Section: Chapter Questions

Problem 3CYBK

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Similar questions

Why is retrospective treatment of changes in accounting estimatedprohibited? A. Changes in estimate are normally corrections and adjustments which are the natural result of the accounting process B. The retrospective treatment for any type of presentation is not allowed C. Retrospective treatment of changes in accounting estimate is required by IFRS D. The IFRS is silent on the issue
Sometimes financial statements contain errors. What type of liabilities may need correction as a prior period adjustment?
Corrections of errors that occurred on a previous periods financial statements are called ________. A. restrictions B. deficits C. prior period adjustments D. restatements
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Prior period errors: a. Do not include mistake in the application of policy b. Do not affect presentation of financial statements c. Do not require further disclosure d. Are omissions and misstatements in the financial statements of prior periods
When it is difficult to distinguish a change in accounting policy from achange in an accounting estimate, the change is treated as A. Change in accounting estimate with appropriate disclosureB. Change in accounting policyC. Correction of an errorD. Initial adoption of an accounting policy
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if a change in accounting principle is inseparable from the effect of a change in estimate, this material event should be accounted for as a change in A. Estimate, and the auditor should report on consistency.B. Principle, and the auditor should report on consistencyC. Estimate, and the auditor should not recognize the change in the reportD. Principle, and the auditor should not recognize the change in the report
The allowance for doubtful accounts, which appears as a deduction from accounts receivable on a statement of financial position and which is based on an estimate of bad debts, is an application of which of the following? a. Expense recognition principle. b. Consistency characteristic. c. Materiality quality. O d. Revenue recognition principle.
describe the fi nancial reporting treatment and analysis of non-recurring items (including discontinued operations, extraordinary items, unusual or infrequent items) and changes in accounting standards
Discuss and illustrate how a correction of an error in previously issued financial statements should be handled.