Quiz 20.34 – Retrospective Approach Adjustment
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Which account is usually NOT adjusted when using the retrospective approach for a change to the FIFO method?
Which account is usually NOT adjusted when using the retrospective approach for a change to the FIFO method?
What will happen to the reported 2020 inventory amount in the 2021 comparative financial statements when La Casita Restaurants changes from FIFO to weighted average inventory costing during 2021?
Which change is NOT typically accounted for using the prospective approach?
Which change is NOT typically accounted for using the prospective approach?
Which of the following examples represents 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?