Chap020 (accounting) 49 - 27 Which of the following is not...

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27. Which of the following is not an example of a change in accounting principle? A. A change in the useful life of a depreciable asset. B. A change from LIFO to FIFO for inventory costing. C. A change to the full costing method in the extractive industries. D. A change from the cost method to the equity method of accounting for investments. AACSB: Reflective thinking Bloom's: Comprehension Learning Objective: 20-02 Describe how changes in accounting principle typically are reported. Level of Learning: Medium 28. When the retrospective approach is used for a change to the FIFO method, which of the following accounts is usually not adjusted?
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Unformatted text preview: D. All of the above usually are adjusted AACSB: Reflective thinking Bloom's: Comprehension Learning Objective: 20-02 Describe how changes in accounting principle typically are reported. Level of Learning: Medium 29. JFS Co. changed from straight-line to DDB depreciation. The journal entry to record the change includes: A. A credit to accumulated depreciation. B. A debit to accumulated depreciation. C. A debit to a depreciable asset. D. The change does not require a journal entry. AACSB: Analytic Bloom's: Synthesis Learning Objective: 20-04 Explain how and why changes in estimates are reported prospectively. Level of Learning: Medium...
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  • Spring '10
  • McTosh
  • Accounting, Generally Accepted Accounting Principles, AACSB

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