6332 pract exam 3 part 2 spring 2011

6332 pract exam 3 part 2 spring 2011 - Chapter 20 -...

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Chapter 20 - Accounting Changes and Errors Chapter 20 JUST MC NO QUES NO PROB NO CALCULATION Multiple Choice Questions 15. How many acceptable approaches are there for changes in accounting principles? A. One B. Two C. Three D. Four AACSB: Reflective thinking Bloom's: Knowledge Learning Objective: 20-01 Differentiate among the three types of accounting changes and distinguish between the retrospective and prospective approaches to accounting for and reporting accounting changes. Level of Learning: Easy 17. An accounting change that is reported by the prospective approach is reflected in the financial statements of: A. Prior years only. B. Prior years plus the current year. C. The current year only. D. Current and future years. AACSB: Reflective thinking Bloom's: Knowledge Learning Objective: 20-01 Differentiate among the three types of accounting changes and distinguish between the retrospective and prospective approaches to accounting for and reporting accounting changes. Level of Learning: Easy 22. Accounting changes occur for which of the following reasons? A. Management is being fair and consistent in financial reporting. B. Management compensation is affected. C. Debt agreements are impacted. D. All of the above. AACSB: Reflective thinking Bloom's: Comprehension Learning Objective: 20-01 Differentiate among the three types of accounting changes and distinguish between the retrospective and prospective approaches to accounting for and reporting accounting changes. Level of Learning: Medium 20-1
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Chapter 20 - Accounting Changes and Errors 24. Companies should report the cumulative effect of an accounting change in the income statement: A. In the quarter in which the change is made. B. In the annual financial statements only. C. In the first quarter of the fiscal year in which the change is made. D. Never. AACSB: Reflective thinking Bloom's: Knowledge Learning Objective: 20-02 Describe how changes in accounting principle typically are reported. Level of Learning: Easy 25. Disclosure notes related to a change in accounting principle under the retrospective approach should include: A. The effect of the change on executive compensation. B. The auditor's approval of the change. C. The SEC's permission to change. D. Justification for the change. AACSB: Reflective thinking Bloom's: Knowledge Learning Objective: 20-02 Describe how changes in accounting principle typically are reported. Level of Learning: Easy 26. Which of the following is an example of a change in accounting principle? A. A change in inventory costing methods. B. A change in the estimated useful life of a depreciable asset.
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This note was uploaded on 06/16/2011 for the course ACCT 6325 taught by Professor Charles during the Spring '11 term at University of Texas at Dallas, Richardson.

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6332 pract exam 3 part 2 spring 2011 - Chapter 20 -...

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