According to AASB110, which of the following is an adjusting event? Select one: a. All of the above b. Determination after the end of the reporting period of amount of profit sharing or bonus payments c. Determination after the end of the reporting period of cost of assets purchased prior to year end d. Discovery of fraud or errors showing that the financial statements are incorrect

Q: Which of the following statements regarding accounting change is correct? a. Change in depreciation…

A: Accounting changes means when there is some change in the process and methodologies related to…

Q: Which one among the following statements is not a characteristic of the integral view of presenting…

A: There are two interim reporting approaches for making a financial statement. Integral View Discrete…

Q: How should the following changes be treated, according to PAS 8? I. A change is to be made in the…

A: According to PAS 8 a change   is   to   be   made   in   the   method   of   calculating   the…

Q: What is the difference between reporting accounting changes, changes in estimates, and error…

A: Financial Reporting: Financial reporting is the method involved with archiving and conveying…

Q: Which statement is true regarding interim reporting? A. Interim reports are required on a quarterly…

A: Break Financial Reporting applies when a substance readies a between time monetary report, without…

Q: The accounting changes identified by current GAAP include all of the following except O change in…

A: US GAAP provides the guidelines for the requirements of reflecting the accounting changes and…

Q: Choose the correct. How should material seasonal variations in revenue be reflected in interim…

A: Variance:   Variance refers to the difference level in the actual cost incurred and standard cost.…

Q: Which of the following is not a characteristic of non-counterbalancing error? Group of answer…

A: Non counter balancing errors are those errors which will not be automatically corrected in the next…

Q: An accountant failed to record the adjusting entry for accrued revenues. How does this error affect…

A: Accrued revenues are those which have been accrued but not yet paid.   Adjusting entry for accrued…

Q: Which statement concerning accounting for accounting changes and errors is not true? a. An error is…

A: Accounting principles means the principles which is used while making the books of accounts. For…

Q: A change from the straight-line method of depreciation to sum-of-years' digits is accounted for as…

A: Change in accounting estimate relates with an estimates for doubtful allowance, estimate for…

Q: The Accountant for the a Company forgot to make an adjusting entry to record depreciation for the…

A: What is Depreciation? In business, the fixed asset is used over a long period. Due to this, there is…

Q: Which one of these changes would be classified as ‘a change in accounting policy’ as determined by…

A: Accounting Policy are the rules and procedures an entity use to disclose, record and present the…

Q: What is the effect of omission of accrued income in assets at the end of the year of error? a.…

A: Accrued income: Increases assets Increases Owners' equity

Q: An example of an item that should be reported as a prior-period adjustment in a company’s annual…

A: Error correction:Error correction is an adjustment to previously issued financial statements. It is…

Q: The following are non-adjusting events, except A. Declaration of dividends after the reporting date…

A: Accounting event: An economic transaction which brings about any changes in the financial items of a…

Q: Failure to prepare an adjusting entry at the end of the period to record an accured expense would…

A: A successful adjusting entry at the end of the period to record an accrued expense would: Increase…

Q: By how much would the December 31, 2021 retained earnings be misstated if no adjustments were made…

A: Note: Only 39 & 40 have been answered as required.   39. 2007 Items 1 and 2 will self-correct in…

Q: A change in accounting estimate is An adjustment of the carrying amount of an asset or liability,…

A: Answer: Change in accounting estimate is the change in the value of the carrying amount of the…

Q: Which of the following adjusting entries involves the recognition of an accrued expense? a.…

A: Accrued expenses are those which are due but yet to be paid in the future.So it is recognised before…

Q: Which of the following is NOT an accounting method that would increase the current ratio (currently…

A: Current assets means those assets which will be converted in to cash in near future generally one…

Q: Which of the following statements about a change in accounting estimate is not true?

A: Accounting estimates are judgments and assumptions made by management in measuring various assets ,…

Q: What is the effect of omission of accrued expenses in assets at the end of the year of error? a.…

A:

Q: By how much would the December 31, 2021 retained earnings be misstated if no adjustments were made…

A: Year Reference Account Name Debit  (P) Credit (P) Overstated/(Understated) retained earnings  2020…

Q: a correction in the calculation of earnings per share of a prior period   a material difference…

A: Prior period adjustments are adjustments made to periods that are not current but have already been…

Q: Choose the incorrect statement below: A. An entity shall select and apply different accounting…

A: As per IAS 8, Accounting Policies, Changes in accounting estimates and Errors, An accounting policy…

Q: Which of the following statements is correct? Options: • The net income would still be the same…

A: The accrual basis of accounting is the method under which the income earned and expenses incurred is…

Q: that had not previously been recorded. C. Adjusting entries can be used to record

A: An adjusting journal entry is a journal entry made at the conclusion of an accounting period in the…

Q: Which of the following is most likely to be a non-adjusting event? * A major customer liquidates its…

A: Non-Adjusting Event: When an event occurs that is not an adjustment to the financial statements, it…

Q: If a P2,500 adjustment for depreciation is omitted, which of the following financial statement…

A:

Q: ous period’s financial statements are called?

A: It is common to occur errors in the financial statements, but whenever it is found that errors have…

Q: The adjusting entry for accrued fees was omitted at the end of the current year. Indicate which…

A: Required adjusting entry:

Q: What is the effect of omission of accrued expenses in assets at the end of the year of error? O No…

A: Accrued expenses are expenses that are recognised in the books of accounts before they have been…

Q: Which of the following is not a characteristic of non-counterbalancing error? a. If not detected,…

A: The errors which are not automatically corrected in the following accounting period is known as…

Q: If it is discovered that an extraordinary repair in the previous year was incorrectly debited to…

A:

Q: Which of the following statements is incorrect?   A. Adjustments to prepaid expenses and unearned…

A: An adjusting journal entry is a change made to an asset or liability account, as well as…

Q: Which of the following types of errors will not self-correct in the next year?

A: Answer: There are different types of accounting errors in the financials.

Q: tate the effect of the following errors if OVERSTATED, UNDERSTATED, or NO EFFECT. NO. ERRORS EFFECT…

A: Solution  Concept Retained earnings is understated if net income is understated Retained earnings is…

Q: What is the effect of omission of accrued income in assets at the end of the year of error? O NO…

A: A basic Accounting equation is given as under;   Assets = Equity + Liabilities    Meaning,  Total…

Q: Ray Solutions decided to make the following changes in its accounting policies on January 1, 2016:…

A: The given situation is a change in the accounting principles from cash basis of accounting to…

Q: The mandatory adoption of a new accounting principle as a result of a new FASB Statement requires…

A: FASB stands financial accounting standards board. It basically aims at improving GAAP (Generally…

Q: What is the accounting treatment for discontinued operations? A :    It is reported at its gross…

A: In the today's world, it is possible that an entity of group is not earning profit due to several…

Q: A company made a material error in calculating and reporting amortization expense in Year 1. The…

A: SOLUTION- AMORTIZATION EXPENSE-  THE ALLOCATION TO EXPENSE OF THE COST OF AN INTANGIBLE ASSET SUCH…

Q: According to IAS 8, how should prior period errors that are discovered in a subsequent reporting…

A:

Q: Change in Accounting Policy, Change in Estimate, Correction of Error For each of the following…

A: In this question we have been given some cases based on which we have been asked about the type of…

Q: GIVE A DETAILED ANSWER  Describe the effect on the financial statements when an adjustment is…

A: Due to the error of omission or any other reason, when the revenue or income company has earned…