Would a change from Completed Contract to Percentage of Completion be a change in accounting principle- or a change of estimate?How would it be applied?

Q: How are restrictions of retained earnings reported?

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Q: hy doesnt the adjusted trial balance have a retained earnings section?

A: Adjusted trial balance:- It reflects the final balances of ledger accounts after making all…

Q: How should the following changes be treated, according to PAS 8? I. A change is to be made in the…

A: According to PAS 8 a change   is   to   be   made   in   the   method   of   calculating   the…

Q: How does accrued but uncollected revenue affect the balance sheet?

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Q: The statement 'revenue is recognized in the accounting period in which the performance obligation is…

A: The revenue recognition principal state that the the revenue should be recognised in books when the…

Q: ment made in preparing the financial statementsthat can lead to estimatio

A: A financial Statement includes an Income statement which the net result from the operations of the…

Q: How to write-off non recurring items in accounting?

A: Non Recurring Items: Unexpected and unusual Entries in the income statement which are not supposed…

Q: Define the term Temporary earnings.

A: Earnings: The term earnings refer to the amount of money the company had earned during a particular…

Q: If a company incorrectly records a payment as an asset, rather than as an expense, how will this…

A: Payments are made against the goods or services received. Hence, it is recorded as an expense.

Q: In what way may the use of percentage depletion violatesound accounting theory?

A: Depletion: Depletion is defined as the reduction in the value of natural resources due to its…

Q: What is meant by a ‘statement of affairs’? How can the profit or loss of atrader be ascertained with…

A: What is meant by a ‘statement of affairs’?    It refers to a statement of assets and liabilities of…

Q: Explain is a change in depreciation method a change in accounting principle, or is it a change in…

A: According to the Accounting Standard 1-  the change in the method of depreciation is a change in the…

Q: how does the change in accounting of nonrecurring items?

A: Non Recurring items are the ones that do not occur frequently.

Q: Why should the beginning retained earnings be adjusted for prior period errors and effects of change…

A: Prior period errors are the omissions from and miss-statements in entity's financial statement for…

Q: Uncarned revenues are received and recorded as liabilities before they are earned. earned and…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: If a payment of a deferred expense was recorded under the alternative treatment, what account would…

A: Deferred expensesAdvance payment for future expenses is called as prepaid expenses. These prepaid…

Q: TRUE OR FALSE? Advertising and bonuses are reported in the interim period when incurred.

A: Financial statements are those statements which are prepared at the end of accounting period in…

Q: What is the effect on income (overstated or understated), if the adjusting entries are notrecorded?

A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year,…

Q: A change in the liability for warranty costs requires a. presenting prior-period financial…

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Q: does a cancellation of a service affect the companys balance sheet or book value?

A: Cancellation of service affect the company's balance sheet or book value : Some of the contracts…

Q: How is a revenue-recognition abuse related to the percentage of completion method?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Difference between deferral of expenses/revenue and accrued expenses/ revenue?

A: The business adjust the profits of the business for the current year considering deferred and…

Q: If the statement of financial position error is discovered in the year of error, what action is to…

A: Errors mean the data entered in the financial system is not as per accounting standard. There has…

Q: Of what merit is the contention that the allowance methodlacks the objectivity of the direct…

A: Direct write-off method: This method does not make allowance or estimation for uncollectible…

Q: The use of the cumulative effect method to account for a change in accounting principle violates the…

A: Accounting principles are the set of rules which define the way accounts should be prepared and…

Q: hey why doesnt the adjusted trial balance have a retained earnings section?

A: It shows the final ledger account balances that will be presented further on financial reports.

Q: Describe the accounting treatment of anticipated uncollectible accountsreceivable.

A: As per the matching principle of accounting, all expenses relating to the revenues must be accounted…

Q: An accrued expense can best be described as an amount Paid and currently matched with earnings…

A: Solution Concept Accrued expense Accrued expense means the expense that has already been incurred…

Q: How does accounting rate of return (ARR) differ from the internal rate ofreturn (IRR)?

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: A prior period error is not included in profit or loss but treated as an adjustment of the beginning…

A: The prior period error includes errors such as the omission of an accounting entry, wrong posting in…

Q: Would a change from straight line depreciation to double declining balance be a change in accounting…

A: Accounting changes:   When a company requires to sacrifice the consistent accounting methods and…

Q: Does the deductibility of an expense or loss follow accounting practice?

A: The accounting practice is the practice of recording the day-to-day financial transactions of the…

Q: How is a change from a non-GAAP accounting method to a GAAP method recorded?

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…

Q: The effect of a revision of an accounting estimate must be recognised in profit and loss in which…

A: The estimate is based upon the opinion of one person that can vary in upcoming periods.

Q: In the following liabilities, the payee is known, however, the amount may have to be estimated.…

A: provision should be created for all the certain liabilities

Q: The current ratio is useful in determining a company’s ability to pay obligations when they…

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Q: What are some of the possible costs that could result from a revision of an accounting standard?

A: Financial Accounting Standards Board (FASB):   It is a private, non-profit organization which is a…

Q: How do modifying entries relate to the difference between cash accrual accounting and the difference…

A: Introduction : All cash transactions must be converted into accrual accounting for adjustment…

Q: Which of the following should be treated as a change in accounting policy?  A change is made in the…

A: General accepted accounting principles means those set of standards which is followed while…

Q: How are the balance sheet and income statement affected by fair value accounting?

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Q: How do you make adjustments for a non-counter balancing error and does it affect the present…

A: If the error has not counterpoised then Associate in Nursing entry should be created to maintained…

Q: True or false Reclassification of an error will require an adjustment to the retained earnings…

A: Error and Omission of Error and treatment

Q: to recast or adjust

A: Introduction  : The recognized accounting practice of deleting or modifying things from your…

Q: whats the difference between an expense and liability according to accounting?

A: Accounting: Accounting is defined as recording, summarizing and classifying the financial…