Quiz 20.40 – Identifying Non-Prospective Accounting Changes
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Which change is NOT typically accounted for using the prospective approach?
Which change is NOT typically accounted for using the prospective approach?
Which change in inventory costing should NOT be reported by revising the financial statements of prior periods?
Which of the following examples represents a change in estimate?
Which of the following is an accounting change that is accounted for prospectively?
Which of the following accounting changes is NOT a change in estimate?
How is a change in the residual value of equipment accounted for in financial statements?
How is the $2 difference in estimated warranty costs for P Co. between 2020 and 2021 reported?
How should Gore Inc. account for the difference between its recorded liability for probable litigation losses and the actual legitimate warranty claims filed by customers?
What is the appropriate accounting treatment for PK Precision Tools’ change in depreciation method from accelerated to straight-line for some equipment purchased eight years ago, which was accounted for as a change in accounting principle?
What is the appropriate journal entry to record JFS Co.’s change from straight-line to double-declining-balance depreciation method? Which of the following accounts should be credited or debited?