What characterizes a change in accounting estimate versus a change in principle? a) It must be approved by shareholders b) It requires retroactive application to all prior periods c) It affects future periods only and doesn't require restatement d) It only applies to depreciation methods

What is the purpose of recognizing depreciation on the financial statements?  Is it designed to report PPE at fair value on the balance sheet?

Explain the accounting treatment in the event that an impairment review of a non-current asset which has been previously revalued with a revaluation surplus revealed that the non-current asset has suffered an impairment loss.

what happen when different depreciation methods are used in different financial year? Does it have any effect on the financial statements? if yes explain and if no explain in details

A change in accounting estimate is accounted for by Prospective application Retrospective application Retrospective restatement Any of the above

Generally accepted methods of accounting for a change in accounting principle include O ncluding the cumulative effect of the change in current period net income. restating prior years' financial statements presented for comparative purposes. O making a prior period adjustment. O prospective changes.

10. Changes in amortization method, useful life, and residual value are changes in accounting estimates and are accounted for a. prospectively. b. retrospectively. C. a or b d. not accounted

If depreciation expense is not recorded how would that affect financial statements and decision-makers?

The omission of an adjusting entry for the depreciation of equipment will have what effect on the financial statements?

Change in an accounting principle is accounted for O by a prior period adjustment. O by a retrospective application of a new accounting principle. O by constructive application of a new accounting principle.