Quiz 20.23 – Understanding the Modified Retrospective Approach for Accounting Changes
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
What is required under the modified retrospective approach for accounting changes?
What is required under the modified retrospective approach for accounting changes?
Which of the following changes would require the use of the retrospective approach for accounting purposes?
Which change in accounting should NOT use the retrospective approach?
Which of the given changes in accounting principle is NOT typically accounted for by retrospectively revising prior financial statements?
Which option(s) correctly identify the appropriateness of retrospective restatement for changes in accounting estimates and accounting principles?
When should companies report the cumulative effect of an accounting change in the income statement?
Where is the cumulative effect of most changes in accounting principle reported in the financial statements?
Under the retrospective approach, how are account balances in the general ledger adjusted when an accounting change is reported?
What should disclosure notes related to a change in accounting principle under the retrospective approach include?
Which item is not included in the retrospective approach?