identify whether it is treated as a prior period adjustment or change in accounting estimate. Upon reviewing customer contracts, the company realizes it mistakenly reported $150,000 in revenue instead of the actual amount earned of $15,000. This mistake occurred two years ago and had a material effect on financial statements.
identify whether it is treated as a prior period adjustment or change in accounting estimate. Upon reviewing customer contracts, the company realizes it mistakenly reported $150,000 in revenue instead of the actual amount earned of $15,000. This mistake occurred two years ago and had a material effect on financial statements.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter14: Statement Of Cash Flows (cashflow)
Section: Chapter Questions
Problem 4R: Suppose that an audit of Prime Sports Gear encountered the following two errors: a. Inventory...
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identify whether it is treated as a prior period adjustment or change in accounting estimate. Upon reviewing customer contracts, the company realizes it mistakenly reported $150,000 in revenue
instead of the actual amount earned of $15,000. This mistake occurred two years ago and had a material
effect on financial statements.
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