Chap020 (accounting) 51 - prospective approaches to...

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33. Which of the following accounting changes should not be accounted for prospectively? A. The correction of an error. B. A change from declining balance to straight-line depreciation. C. A change from straight-line to declining balance depreciation. D. A change in the expected salvage value of a depreciable asset. AACSB: Reflective thinking Bloom's: Comprehension Learning Objective: 20-03 Explain how and why some changes in accounting principle are reported prospectively. Level of Learning: Easy 34. Prior years' financial statements are restated under the: AACSB: Reflective thinking Bloom's: Knowledge Learning Objective: 20-01 Differentiate among the three types of accounting changes and distinguish between the retrospective and
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Unformatted text preview: prospective approaches to accounting for and reporting accounting changes. Level of Learning: Easy 35. A change that uses the prospective approach is accounted for by: A. Implementing it in the current year. B. Reporting pro forma data. C. Retrospective restatement of all prior financial statements in a comparative annual report. D. Giving current recognition of the past effect of the change. AACSB: Reflective thinking Bloom's: Knowledge Learning Objective: 20-03 Explain how and why some changes in accounting principle are reported prospectively. Level of Learning: Easy...
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