Question

8. Dunder Millin revised the useful life of its PP&E in the 4 quarter of 2018 from 10 remaining years to 1 remaining years. How should this change be applied in 2018? This is a change in estimate that should be reported in all four quarters of 2018 b. This is a change in estimate that should be reported in the 4 quarter of 2018. c. This is a change in estimate that should be applied retroactively since the acquisition of the asse d. This is a change in accounting principles that should be applied retroactively since the acquisition of the asset 9. ER Company reports of its annual pension expense each quarter. a. This is acceptable b. This is not acceptable 10. The effective income tax rate reported in the annual report is based upon a Taxable income / Income taxes payable b. Income taxes payable / Taxable income c. Income taxes payable/pre-tax accounting income d. Pre-tax accounting income / Income taxes payable 11. During 2017, Party City generated sales of $20,000 in the 1" Quarter, 532,000 in 200 Quarter. $40,000 in 3 Quarter, and $60,000 in 4 Quarter. In addition, Party City sold an operating asset in the 2 Q for a $16,000 gain. What should Party City report on its 4 Quarter statement? Sales Gain a. $38,000 $4,000 b. $38,000 zero c. $60,000 $4,000 d. $60,000 zero 12. Which statement is correct regarding the treatment for interim reporting? a. GAAP requires a company to physically count its inventory at the end each quarter so that it could accurately determine its ending inventory. b. GAAP requires that the interim financial statements be audited by an independent public accountant. c. Both a and b d. Neither a norb

Answer 1

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