ch22 - CHAPTER 22 ACCOUNTING CHANGES AND ERROR ANALYSIS...

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CHAPTER 22 ACCOUNTING CHANGES AND ERROR ANALYSIS TRUE-FALSE —Conceptual Answer No. Description F 1. Change in accounting estimate. T 2. Errors in financial statements. F 3. Adoption of a new principle. T 4. Retrospective application of accounting principle. F 5. Reporting cumulative effect of change in principle. T 6. Disclosure requirements for a change in principle. T 7. Indirect effect of an accounting change. T 8. Retrospective application impracticality. F 9. Reporting changes in accounting estimates. T 10. Change in principle vs. change in estimate. F 11. Accounting for change in depreciation method. F 12. Accounting for change in reporting entities. T 13. Example of a change in reporting entities. F 14. Accounting error vs. change in estimate. T 15. Accounting for corrections of errors. T 16. New principle created by FASB standard. F 17. Balance sheet errors. F 18. Definition of counterbalancing errors. T 19. Accounting for counterbalancing errors. T 20. Correcting entries for noncounterbalancing errors. MULTIPLE CHOICE —Conceptual Answer No. Description b 21. Accounting changes and consistency concept. b 22. Identify changes in accounting principle. c 23. Identify a non-retrospective change. d 24. Identify a change in accounting principle. a 25. Entry to record a change in depreciation methods. c 26. Disclosures required for a change in depreciation methods. c 27. Change from percentage-of-completion to completed-contracts. d 28. Disclosures required for a change from LIFO to FIFO. b 29. Change from FIFO to LIFO. c 30. Change in accounting estimate. a 31. Change in accounting estimate. b 32. Identify a change in accounting estimate. b 33. Change in accounting estimate. c 34. Identify a change in accounting estimate. d 35. Identify a change in reporting entity. c 36. Retroactive reporting a change in reporting entity. c 37. Identify a correction of an error. b 38. Identification of counterbalancing errors.
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Test Bank for Intermediate Accounting, Twelfth Edition MULTIPLE CHOICE —Conceptual (cont.) Answer No. Description c 39. Impact of failure to record purchase and count ending inventory. c 40. Impact of failure to record purchase and count ending inventory. MULTIPLE CHOICE —Computational Answer No. Description b 41. Calculate effect of a change in depreciation method. b 42. Calculate effect of a change in depreciation method. c 43. Calculate net income with change in accounting principle with tax effects. d 44. Calculate effect of accounting change. a 45. Calculate depreciation expense after change in accounting principle. d 46. Calculate cumulative effect of a change on retained earnings. b 47. Calculate effect of a change on retained earnings. c 48. Compute depreciation expense after a change in depreciation methods. b 49. Calculate cumulative effect of a change in inventory methods.
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