Accounting Errors Flashcards
How do you calculate the remaining useful life when an asset’s life is revised?
When is a change in accounting principle recorded prospectively vs. retrospectively
Impact of inventory errors on COGS and Net income blueprint
How is the correction of a mathematical error in prior years’ depreciation recorded?
What are the types of accounting changes and their treatments
What is a change in accounting principle, and how is it treated
How are prior-period accounting errors corrected when comparative financial statements are issued or not issued?
What is a change in reporting entity, and how is it accounted for
How is a change in revenue recognition for long-term construction contracts from a point in time to over time accounted for?
What are the steps to adjust beginning retained earnings for a prior-period error involving over-expensed amounts?
How are changes in depreciation method and depreciation errors treated differently under U.S. GAAP?
How is the cumulative effect of a change from LIFO to FIFO reported in the financial statements under ASC 250?
How is the cumulative effect of changing inventory methods calculated and reported
How is a change in depreciation method reported in financial statements?
How are changes in warranty cost estimates treated in financial statements?
How does a change to the percentage-of-completion method affect financial statements
How is a change in accounting principle inseparable from a change in estimate reported, and why is separate disclosure incorrect
How is an accounting change handled when retrospective application is impracticable, and why are other treatments incorrect
How is an understated ending inventory error in prior financial statements corrected under GAAP
How is a change from LIFO to FIFO accounted for, and why are other treatments incorrect
How do beginning and ending inventory errors directly or indirectly affect Cost of Goods Sold (COGS)
How do beginning and ending inventory errors affect COGS example
How is a change in inventory valuation method (e.g., individual item to aggregate approach) reported, and why are other treatments incorrect
Are any affects reported as cumulative effects on the income statement?
Which error causes an overstatement of both current assets and stockholders’ equity, and why are other options incorrect?
How should indirect effects from a change in accounting principle be reported, and what are examples of indirect effects
Which of the following is considered a direct effect of a change in accounting principle?
A) Deferred taxes
B) Profit sharing
C) Royalty payments
D) None of the above
How is the cumulative effect of a change from the cash basis to the accrual basis reported
How are error corrections and cumulative effects of principle changes addressed, and how do they differ
