What are the requirements for a prior period adjustment?

Q: compensation in commodatum.

A: Commodatum is nothing but a roman law which states that commodatum is an agreement which is a type…

Q: What does the term “end-of-period convention” mean? What does it not mean?

A: End-of-period convention is an accounting concept according to which all income and outgoing payment…

Q: how much is the Allowance for Overvaluation after adjustment?

A: Given that, Allowance for overvaluation = P157,500 Shippment from home office = 120% of cost…

Q: What is the difference between adjusting entries and correcting entries? Which method is better and…

A: Difference between adjusting entries and correcting entries:Usually, adjusting entries are needed at…

Q: What is the End-of-Period Convention?

A: As per the end-of-period convention, all incoming and outgoing payments (cash flows) of an…

Q: In the phrase “end-of-period convention,” the word “period” refers to what?

A: Introduction: Revenues are the profits or benefits that one person is having, while costs are the…

Q: What are the considerations in imputing an appropriateinterest rate?

A:

Q: Explain the difference between the two types of subsequent events.

A: Subsequent events refers to events which occur after the end of reporting period but before…

Q: Differentiate between an originating temporary difference and a reversing difference.

A:

Q: How does Target record repairs and maintenance expense?

A: Revenue expenditures:   These costs are incurred to maintain the long-term asset in good condition…

Q: What are the methods of preparing trial balance?

A: Trial balance is the workbook that maintains all balances of ledgers in a particular period.  It is…

Q: Short-term decisions are viewed as decisions that have short-term impacts and can be changed or…

A: Business decisions that affect the short term plans of a business are known as short-term decisions.…

Q: What is the difference between Payables Ageing Summary and Payables Ageing Detailed Reports?

A: Payables ageing reports are related to MYOB (Mind your own business. This is found in Report meny…

Q: The purpose of adjustments is to?

A: In simple words, adjusting entries are the changes to the journal entries that are already made in…

Q: What is the purpose of the accrual tranche?

A: The diverse CMO bunches are known as a tranche. Gathering tranche too known as Z tranche is the…

Q: Briefly explain the purposes of adjustments.

A: Adjustments (Adjusting entries) : These are made to record the business transactions that has been…

Q: What is the definition of valuation allowance?

A:

Q: Define time period concept.

A: Accounting principle: These are the guidelines which are to be applied while preparing the…

Q: Define Adjustments

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: correction of prior period

A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: Define adjustment bureau

A: Adjustment bureaus generally operate under the laws of the federal government. These adjustment…

Q: The correction of errors is the situation that creates prior period adjustments. Explain what are…

A: Prior period adjustments:   The corrections or adjustments that are made to the current year…

Q: What is allowance method?

A: Definition:   Allowance method of accounting for uncollectible accounts: This is the accounting…

Q: What's the adjustment?

A: The answer is provided as follows:

Q: Which of the following would be the correct adjustment if there was an increase in an accrual?

A: as per the accounting principal and practice ; Every DEBIT has an equal Credit. Every Debit are…

Q: Over what period of time should compensation cost be allocated?

A: As per GAAP, the compensation cost must be recognized over the service period of an employee.For…

Q: Methods and rules to be followed in case of reconstitution?

A: Solution- It is often noticed that a partnership firm undergoes restructuring. These changes are…

Q: find the period of deferral in this problem

A: Payments are made every 3 years. First payment occurs after 9 years.

Q: How is the date of transition and the date of reporting determined in first-time adoption of IFRS?

A: Date of transition is the beginning of the earliest period for which an entity presents full…

Q: artnership should be adjuste

A: Partnership is a type of business. In partnership there are some Reconstruction of partnership event…

Q: Under what conditions should a provision be recorded?

A: Provision:   A provision is an account that records a liability of an organization. The liability is…

Q: What are program services expenses?

A: Non-Profit Organization is legal entity formed to serve the welfare for the people & society. It…

Q: Define Prior Period Adjustments.

A:

Q: What is interim reporting?

A: Financial Reporting:   It refers to the disclosure of the financial results of the organization to…

Q: What is the definition of “retrospective application”?

A: The first book that the company will prepare is the journal book in which all the transactions of…

Q: Define aging schedule

A: Aging schedule It is the accounting table that indicates the accounts receivables of the company,…