F1 - Income Statement Flashcards
1
Q
How should the effect of a change in accounting principle that is inseparable from the effect of a change in accounting estimate be reported?
A
As a component of income from continuing operations.
2
Q
The cumulative effect of a change in accounting principle is shown as
A
An adjustment to beginning retained earnings.
3
Q
Changes in estimates affect only:
A
The current and subsequent periods (not prior periods and not retained earnings)
