Assign the letters to the statements in the table.
Homework Answers
| 1 | E - None of the above |
| 2 | D - Correction of Error |
| 3 | A - Voluntary accounting policy change |
| 4 | C - Change in Accounting estimate |
| 5 | B - Involuntary accounting policy change |
Add Answer to:
Assign the letters to the statements in the table.
2 A. Voluntary accounting policy change B....
Question Three You are a senior accountant at ABC LTD. While proof-reading financial statements for the...
Question Three You are a senior accountant at ABC LTD. While proof-reading financial statements for the year ended 30 June 2017, Luiza, a trainee accountant, has Identified certain changes from last year's financial statements but she is unsure whether they represent a change in accounting policy, a revision in accounting estimate or a correction of prior-period error. Identify whether the following constitute a change in accounting policy, a revision in accounting estimate or a correction of prior-period error. a) Previously,...
Problem 20-13 Accounting changes and error correction; seven situations; tax effects considered [LO20-1, 20-2, 20-3, 20-4,...
Problem 20-13 Accounting changes and error correction; seven situations; tax effects considered [LO20-1, 20-2, 20-3, 20-4, 20-6] Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2006 by two talented engineers with little business training. In 2018, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2018 before any adjusting entries or closing entries were prepared. The income tax rate...
Analyze each case and choose a letter code under each category (type and approach) to indicate the preferable accounting for each case.
jAnalyze each case and choose a letter code under each category (type and approach) to indicate the preferable accounting for each case.TypeApproachP = PolicyRWR = Retrospective with restatementE = EstimateRNR = Retrospective with no restatementAE = Accounting error P = ProspectiveUsed the instalment sales method in the past five years; an internal audit revealed that use of this method was intended to delay revenue recognition, even though the customers were ...
1. 2. In the previous year, a firm failed to record premium amortization of $41,900 and...
1.
2.
In the previous year, a firm failed to record premium amortization of $41,900 and $29,600, respectively, on its bonds payable and held to maturity bond Investments. These errors affect both Income before tax and taxable income. The firm's tax rate is 30%. As a result of this error, net Income was: Multiple Choice O Overstated by $8.610. O Understated by $33.290. O Understated by $8.610. O Overstated by $33.290. Williams-Santana, Inc., is a manufacturer of high-tech industrial parts...
Question 2 The management of Blossom Company has asked its accounting department to describe the effect...
Question 2
The management of Blossom Company has asked its accounting
department to describe the effect upon the company’s financial
position and its income statements of accounting for inventories on
the LIFO rather than the FIFO basis during 2020 and 2021. The
accounting department is to assume that the change to LIFO would
have been effective on January 1, 2020, and that the initial LIFO
base would have been the inventory value on December 31, 2019. The
following are the...
1. 2. You have been hired as the new controller for the Ralston Company. Shortly after...
1.
2.
You have been hired as the new controller for the Ralston Company. Shortly after joining the company In 2018, you discover the following errors related to the 2016 and 2017 financial statements: a. Inventory at 12/31/2016 was understated by $7,800. b. Inventory at 12/31/2017 was overstated by $12,600. c. On 12/31/2017, Inventory was purchased for $4,800. The company did not record the purchase until the Inventory was paid for early In 2018. At that time, the purchase was...
QUESTION 2 (25 MARKS) i. Identify and explain each of the below situations whether it is...
QUESTION 2 (25 MARKS) i. Identify and explain each of the below situations whether it is a change in policy, or a change in estimate or an error: The chief financial controller had announced that one line product has lost its customer appeal and will be phased out over the next 2 years. Due to this situation, a decision has been made to lower the estimates lives on related production equipment from the remaining 4 years to 2 years. (CLO2:PLO2:C1)(2...
Unhealthy Accounting at HealthSouth PROBLEM In 1996, key executives of HealthSouth, one of the nation’s largest...
Unhealthy Accounting at HealthSouth PROBLEM In 1996, key executives of HealthSouth, one of the nation’s largest providers of health care services, began a massive fraud that eventually amounted to $2.7 billion. HealthSouth is a textbook case of unbridled greed combined with a lack of corporate governance, which illustrates the difficult situation that auditors face when clients perpetrate a massive, collusive fraud. HealthSouth was founded in 1984 by Richard Scrushy and coworkers at Lifemark, a Houston-based company that owned and managed...
Problem 4-04 a-b
Problem 4-04 a-bGrouper Inc. reported income from continuing operations before tax of $2,416,500 during 2020. Additional transactions occurring in 2020 but not included in the $2,416,500 were as follows:1.The corporation experienced an insured flood loss of $108,000 during the year.2.At the beginning of 2018, the corporation purchased a machine for $64,800 (residual value of $14,400) that has a useful life of six years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed to deduct the residual value...
Case Study Analysis: Fred Stern & Company, Inc. (Knapp): In the business world of the Roaring...
Case Study Analysis: Fred Stern & Company, Inc. (Knapp): In the business world of the Roaring Twenties, the schemes and scams of flimflam artists and confidence men were legendary. The absence of a strong regulatory system at the federal level to police the securities markets—the Securities and Exchange Commission was not established until 1934—aided, if not encouraged, financial frauds of all types. In all likelihood, the majority of individuals involved in business during the 1920s were scrupulously honest. Nevertheless, the...
Question Three You are a senior accountant at ABC LTD. While proof-reading financial statements for the year ended 30 June 2017, Luiza, a trainee accountant, has Identified certain changes from last year's financial statements but she is unsure whether they represent a change in accounting policy, a revision in accounting estimate or a correction of prior-period error. Identify whether the following constitute a change in accounting policy, a revision in accounting estimate or a correction of prior-period error. a) Previously,...
1.
2.
In the previous year, a firm failed to record premium amortization of $41,900 and $29,600, respectively, on its bonds payable and held to maturity bond Investments. These errors affect both Income before tax and taxable income. The firm's tax rate is 30%. As a result of this error, net Income was: Multiple Choice O Overstated by $8.610. O Understated by $33.290. O Understated by $8.610. O Overstated by $33.290. Williams-Santana, Inc., is a manufacturer of high-tech industrial parts...
Question 2
The management of Blossom Company has asked its accounting
department to describe the effect upon the company’s financial
position and its income statements of accounting for inventories on
the LIFO rather than the FIFO basis during 2020 and 2021. The
accounting department is to assume that the change to LIFO would
have been effective on January 1, 2020, and that the initial LIFO
base would have been the inventory value on December 31, 2019. The
following are the...
1.
2.
You have been hired as the new controller for the Ralston Company. Shortly after joining the company In 2018, you discover the following errors related to the 2016 and 2017 financial statements: a. Inventory at 12/31/2016 was understated by $7,800. b. Inventory at 12/31/2017 was overstated by $12,600. c. On 12/31/2017, Inventory was purchased for $4,800. The company did not record the purchase until the Inventory was paid for early In 2018. At that time, the purchase was...
QUESTION 2 (25 MARKS) i. Identify and explain each of the below situations whether it is a change in policy, or a change in estimate or an error: The chief financial controller had announced that one line product has lost its customer appeal and will be phased out over the next 2 years. Due to this situation, a decision has been made to lower the estimates lives on related production equipment from the remaining 4 years to 2 years. (CLO2:PLO2:C1)(2...
Most questions answered within 3 hours.
-
As part of Canadian government efforts to boost up economic
trade with international community, on February...
asked 1 minute ago -
In the laboratory a "coffee cup"
calorimeter, or constant pressure calorimeter, is
frequently used to determine...
asked 1 minute ago -
Deinococcus radiodurans is probably the world’s toughest
bacterium (first discovered growing in ground meat that had...
asked 48 seconds from now -
barium oxide with water Express your answer as a chemical
equation. Identify all of the phases...
asked 3 minutes ago -
Which Model can be selected if user is involved in all phases of
sdlc.
select one...
asked 6 minutes ago -
Refer to the following table to answer the next five questions:
Number of Workers Output 1...
asked 5 minutes ago -
An initial solution is made by combing 13 mL of 0.8 M
chloroacetic acid with 20...
asked 11 minutes ago -
Pellets of mass 2.0 g are fired in parallel paths with speeds of
120 m/s through...
asked 16 minutes ago -
You perform a study to investigate whether exercise influences
sleep duration. Participants record their total sleep...
asked 19 minutes ago -
The cell Cu(s)(1M) | Cu2+ || (1M) |
Cu(s) has E = 0.182 V
The cell...
asked 31 minutes ago -
i. y[n + 1] + 1.5y[n] = x[n]
ii. y[n + 1] + 0.8y[n] = x[n]...
asked 34 minutes ago -
A researcher is interested in students' opinions regarding an
additional annual fee to support non-income-producing varsity...
asked 38 minutes ago