Acquiring controlling interest in another company represents a(n) Multiple Choice change in accounting estimate. change in...
Acquiring controlling interest in another company represents a(n)
Multiple Choice
-
change in accounting estimate.
-
change in accounting principle.
-
correction of error.
-
change in entity.
Homework Answers
Answer ;- change in Accounting estimate
- Since fair value of assets & Liabilities is taken while acquisition of another company, Accounting estimate gets changes. Like change in depreciation of Fixed asset due to change in value of assets as a result of acquisition.
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Acquiring controlling interest in another company represents
a(n)
Multiple Choice
change in accounting estimate.
change in...
When a company changes from LIFO to another inventory method, the change is reported Multiple Choice...
When a company changes from LIFO to another inventory method, the change is reported Multiple Choice as a change in an accounting estimate. prospectively because it is impractical to determine the effects of this change on prior years’ net income. as an error correction. using the retrospective approach.
2. Adoption of ASC Topic 842 related to leases represents a Multiple Choice mandatory change in...
2. Adoption of ASC Topic 842 related to leases represents a Multiple Choice mandatory change in accounting principle. voluntary change in accounting principle. mandatory change in accounting estimate. voluntary change in accounting estimate.
Adoption of ASC Topic 842 related to leases represents a Multiple Choice cre -0. voluntary change...
Adoption of ASC Topic 842 related to leases represents a Multiple Choice cre -0. voluntary change in accounting principle. mandatory change in accounting estimate. O cre 1-0 voluntary change in accounting estimate. mandatory change in accounting principle. cre 3-0 Which of the following accounting principle changes typically is reported prospectively? Multiple Choice Adopting ASC topic 606 on revenue recognition on the standard's effective date. Changing inventory method from LIFO to FIFO. О O Changing inventory method from FIFO to LIFO....
Accounting for a controlling financial interest An acquiring company issues 5,000 shares of $2 par value...
Accounting for a controlling financial interest An acquiring company issues 5,000 shares of $2 par value common stock to acquire 100% of the voting common stock of an investee company in a transaction that qualifies as a business combination. The market value of the acquiring company's common stock is $10 per share. Direct legal and consulting fees incurred pursuant to the combination are $2,000. Direct registration and issuance costs for the acquiring company's common stock are $500. The transaction did...
OPTIONS Type of Change: Correction of a Prior Period Error, Change in Accounting Estimate, Change in...
OPTIONS
Type of Change: Correction of a Prior Period
Error, Change in Accounting Estimate, Change in Accounting
Policy
Change (or correction) to be Made:
Prospectively, Retrospectively
Please help thanks so much
For each of the following situations, identify whether the change (or correction) should be made prospectively or retrospectively. Change (or correction) to be Made Type of Change (a) When the company purchased a piece of machinery several years ago, the accounting clerk posted the journal entry to “maintenance expense"...
Classifying Accounting Changes Indicate as appropriate, the nature of each situation described below: Type of Change...
Classifying Accounting Changes Indicate as appropriate, the nature of each situation described below: Type of Change PR Change in Accounting Principle, reported retrospectively PP Change in Accounting Principle, reported prospectively E Change in Estimate ES Change in Estimate resulting from a Change in Accounting Principle R Change in Reporting Entity F Correction of an Error N Not an accounting change ______ Change from Sum of the Years Digits Depreciation method to Straight Line ______ Change in the estimated forfeiture rate...
The three presentation options for accounting changes and error analysis are listed below:: a. Change in...
The three presentation options for accounting changes and error analysis are listed below:: a. Change in accounting principle. b. Change in accounting estimate. c. Change in reporting entity. d. Error correction. INSTRUCTIONS Following are a series of situations. You are to select the letter that corresponds with the best presentation of the item on the financial statements for 20x1. 1.) In 20x1, the company incurred interest expense of $36,000 on a 20-year bond issue 2.) In 20x1, the company changed...
One multiple choice question Which of the following is not accounted for as a change in...
One multiple choice question
Which of the following is not accounted for as a change in accounting principle? Select one: a. A change in the estimated useful life of plant assets. b. A change from accelerated method to straight line method of depreciation. O c. A change from deferring and amortizing R&D expenditures to expensing those as incurred. d. A change in inventory cost-flow assumption from average cost to FIFO. e. a and b f. a, b, and c
Which of the following best represents a characteristic of managerial accounting? Multiple Choice Information is based...
Which of the following best represents a characteristic of managerial accounting? Multiple Choice Information is based on estimates and is bounded by relevance and timeliness. Information is characterized by reliability and objectivity. Information is historically based and reported annually. Information is regulated by the Securities and Exchange Commission.
another choice is 1.98 which one is correct? A company had interest expense of $8,100, income...
another choice is 1.98
which one is correct?
A company had interest expense of $8,100, income before interest expense and income taxes of $19,400, and net income of $9,800. The company's times interest earned ratio equals: Multiple Choice Ο Ο Ο Ο
Adoption of ASC Topic 842 related to leases represents a Multiple Choice cre -0. voluntary change in accounting principle. mandatory change in accounting estimate. O cre 1-0 voluntary change in accounting estimate. mandatory change in accounting principle. cre 3-0 Which of the following accounting principle changes typically is reported prospectively? Multiple Choice Adopting ASC topic 606 on revenue recognition on the standard's effective date. Changing inventory method from LIFO to FIFO. О O Changing inventory method from FIFO to LIFO....
Accounting for a controlling financial interest An acquiring company issues 5,000 shares of $2 par value common stock to acquire 100% of the voting common stock of an investee company in a transaction that qualifies as a business combination. The market value of the acquiring company's common stock is $10 per share. Direct legal and consulting fees incurred pursuant to the combination are $2,000. Direct registration and issuance costs for the acquiring company's common stock are $500. The transaction did...
OPTIONS
Type of Change: Correction of a Prior Period
Error, Change in Accounting Estimate, Change in Accounting
Policy
Change (or correction) to be Made:
Prospectively, Retrospectively
Please help thanks so much
For each of the following situations, identify whether the change (or correction) should be made prospectively or retrospectively. Change (or correction) to be Made Type of Change (a) When the company purchased a piece of machinery several years ago, the accounting clerk posted the journal entry to “maintenance expense"...
One multiple choice question
Which of the following is not accounted for as a change in accounting principle? Select one: a. A change in the estimated useful life of plant assets. b. A change from accelerated method to straight line method of depreciation. O c. A change from deferring and amortizing R&D expenditures to expensing those as incurred. d. A change in inventory cost-flow assumption from average cost to FIFO. e. a and b f. a, b, and c
Which of the following best represents a characteristic of managerial accounting? Multiple Choice Information is based on estimates and is bounded by relevance and timeliness. Information is characterized by reliability and objectivity. Information is historically based and reported annually. Information is regulated by the Securities and Exchange Commission.
another choice is 1.98
which one is correct?
A company had interest expense of $8,100, income before interest expense and income taxes of $19,400, and net income of $9,800. The company's times interest earned ratio equals: Multiple Choice Ο Ο Ο Ο
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