Accounting concept
A company decides to change the straight line method of depreciation to the reducing balance method.
Which Accounting concept does this method support?
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.A company changes from straight line method of depreciation to reducing balance method. Which accounting principle...
.A company changes from straight line method of depreciation to reducing balance method. Which accounting principle has not been applied?
What is the main difference between cash and accrual accounting? Why is accrual accounting adopted more...
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с 22-10 Researching GAAP AICPA Adapted Sometimes a business entity may change its method of accounting for certain items. It may classify the change as a change in accounting principle, a change in accounting estimate, or a change in reporting entity. The following are three situations faced by Hyde Company relating to accounting changes Situation I Hyde determined that the depreciable lives of its fixed assets are presently too long to fairly match the cost of the fixed assets with...
Choose the correct answer 1) When a change in accounting principle is reported, what is likely...
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Accounting
Question 4
a. Ahmad bought a new equipment at RM120,000 on 1 July 2017 . He was undecided whether to depreciate the equipment using straight line method or reducing method at \(20 \%\) per annum.
The equipment is expected to have no residual value.
You are required to calculate the amount of depreciation to be charged against each financial year ending 31 December 2017,31 December 2018 and 31 December 2019 using the straight line method and reducing balance method.
Show...
LO 1 Qualitative Characteristics and Accounting Conventions E2A. CONCEPT Each of the statements that follow violates...
LO 1 Qualitative Characteristics and Accounting Conventions E2A. CONCEPT Each of the statements that follow violates one or more accounting con- cepts. State which of these selected qualitative characteristics and accounting conventions- relevance, faithful representation, comparability, verifiability, timeliness, understandability, cost constraint, consistency, materiality, conservatism, or full disclosure-is (are) violated. 1. A company changes its method of accounting for depreciation. 2. The asset account for a pickup truck still used in the business is written down to what the truck could...
Dwight's Trophy Shop is considering the following accounting changes: Required: Classify each accounting change as elther...
Dwight's Trophy Shop is considering the following accounting changes: Required: Classify each accounting change as elther conservative or aggressive. a. I increase the allowance for uncollectible accounts b. When costs are going up, change from LIFO to FIFO. Change from the straight-line method of depreciation to declining-balance in the second year of equipment with a 10-year life d. Record a smaller expense for warranties
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 ...
For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment...
For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $3,000,000. Its useful life was estimated to be five years, with a $260,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: ($ in thousands) Year Straight Line Declining Balance Difference 2018 $ 548 $ 1,200 $ 652...
Question 14 (1 point) Flynn Company experienced an accounting event that affected its financial statements as...
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с 22-10 Researching GAAP AICPA Adapted Sometimes a business entity may change its method of accounting for certain items. It may classify the change as a change in accounting principle, a change in accounting estimate, or a change in reporting entity. The following are three situations faced by Hyde Company relating to accounting changes Situation I Hyde determined that the depreciable lives of its fixed assets are presently too long to fairly match the cost of the fixed assets with...
LO 1 Qualitative Characteristics and Accounting Conventions E2A. CONCEPT Each of the statements that follow violates one or more accounting con- cepts. State which of these selected qualitative characteristics and accounting conventions- relevance, faithful representation, comparability, verifiability, timeliness, understandability, cost constraint, consistency, materiality, conservatism, or full disclosure-is (are) violated. 1. A company changes its method of accounting for depreciation. 2. The asset account for a pickup truck still used in the business is written down to what the truck could...
Dwight's Trophy Shop is considering the following accounting changes: Required: Classify each accounting change as elther conservative or aggressive. a. I increase the allowance for uncollectible accounts b. When costs are going up, change from LIFO to FIFO. Change from the straight-line method of depreciation to declining-balance in the second year of equipment with a 10-year life d. Record a smaller expense for warranties
Question 14 (1 point) Flynn Company experienced an accounting event that affected its financial statements as indicated below: Assets Liab. + Equity Rev. NA NA Exp. + Net Inc. Cash Flow NA Which of the following accounting events could have caused these effects on Flynn's statements? 1) Recognized depletion expense on a copper mine. O2) Recognized depreciation expense under the double declining balance method. 3) Amortized patent cost under the straight-line method. 4) All of these.
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