Changes in accounting estimates are: Multiple Choice a)Statement of cash flow items. b)Accounted for with a cumulative "catch-up" adjustment. c)Reported as prior period adjustments. d)Accounted for in current and future periods. e)Considered accounting errors.

Changes in accounting estimates are: Multiple Choice a)Statement of cash flow items. b)Accounted for with a cumulative "catch-up" adjustment. c)Reported as prior period adjustments. d)Accounted for in current and future periods. e)Considered accounting errors.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter23A: Statement Of Cash Flows: The Direct Method

Section: Chapter Questions

Problem 3RQ

See similar textbooks

Related questions

Q: When financial statements for a single year are being presented, a prior period error should A. Be…

A: Financial statements of the business includes Income Statement, Balance Sheet and Cash flow…

Q: In preparing the statement of cash flows, determining the net increase or decrease in cash requires…

A: Statement of cash flows: A statement of cash flow is a financial statement that shows the cash and…

Q: To determine cash payments for operating expenses for the statement of cash flows using the direct…

A: operating expenses on an accrual basis converted to operating expenses on a cash basis Two…

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: How is a decrease in current liabilities handled? A. It is subtracted from current assets in the…

A: The correct option is (C) It is subtracted from net income in the cash flow from Operating…

Q: Which financial statement is dated at the moment in time when the accounting period ends? Statement…

Q: Which type of adjustment occurs when cash is either collected or paid, but the related income or…

A: Deferral adjustments are those adjustments where advance cash has been received or paid but income…

Q: The following information is available from the current period financial statements: Net income…

A: Cash flow from Operating Activities means net cash flows from activities related with operations of…

Q: The following information is available from the current period financial statements: Net income…

A: Operating cash flow refers to the amount of money a company earns from ongoing, regular commercial…

Q: Generally accepted methods of accounting for a change in accounting principle include restating…

A: Whenever a company is opts for a new accounting principle in its current financial statements. The…

Q: The following information is available from the current period financial statements: Net income…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: The following information is available from the current period financial statements: Net income…

A: Introduction: A cash flow financial statement that summarizes all cash inflows received by a firm…

Q: The following information is available from the current period financial statements: Net income…

A: Indirect method of cash flow from operating activities,, gives adjustments for non operating…

Q: Which type of adjustment occurs when cash is either collected or paid, but the related income or…

A: The income and expenses are reported in the income statement where expenses are deducted from the…

Q: When preparing a statement of cash flows (indirect method), which of the following is not an…

A: A change in income taxes payable Operating activity A change in dividends payable Financing…

Q: What adjustment(s) should be made to reconcile net income to net cash flows from operating…

A: Using the indirect method, the changes in net working capital accounts needs to be adjusted to net…

Q: When completing the statement of cash flows using the indirect method, an increase in an asset…

A: Cash flows statement: To know the cash position of the company statement of cash flows are prepared.…

Q: Which of the following should be subtracted from net income in computing net cash flows from…

A: Introduction: Statement of cash flows: All cash in and out flows are shown in statement of cash…

Q: Indicate whether each of the following items would be added to or subtracted from net income to…

A: Cash flows from operating activities: The Cash flow operating activities refer to the money or…

Q: To determine cash payments for operating expenses for the statement of cash flows using the direct…

A: Operating expenses: These are the expenses that a business incur through its normal business and…

Q: The following information is available from the current period financial statements: Net income…

A: The cash flow statement is prepared to estimate the net cash inflow or outflow from the business…

Q: The following information is available from the current period financial statements: $ 116,406…

A: Under the indirect method to calculate the cash flow from operations, net income is reconciled with…

Q: When preparing a statement of cash flows, a decrease in accounts receivable during a period would…

A: Statement of Cash Flow - Statement of Cash Flow shows movement of cash during the financial year.…

Q: Which of the following statements is correct about an adjusting entry?

A: Meaning of Adjusting entries;- According to accountancy adjusting entries are those journal entries…

Q: Prepare a tabular analysis of the required adjustment based upon the cash count sheet. (If a…

A: Accounting equation is defined as the equational form of representing the balance sheet which…

Q: reports is not required. However, if this information is not included, any significant changes since…

A: Standard encourages publicly-traded entities to offer period in-between economic reviews that comply…

Q: The following information is available from the current period financial statements: Net income $…

A: As per the given information, the net cash flow from operating activities using the indirect method…

Q: Which of the following would be subtracted from net income when using the indirect method to derive…

A: The cash flow from operating activities can be computed either directly or indirectly. The indirect…

Q: When completing the spreadsheet to prepare the statement of cash flows, a decrease in retained…

A: Statement of cash flows is one of the financial statement of business, which shows all cash inflows…

Q: In a statement of cash flows using indirect method, a decrease in prepaid expenses is: a. reported…

A: Statement of cash flows is an accounting statement that shows the outflows and inflows of cash in…

Q: Using the indirect method, which of the following adjustments to convert net income to net cash…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: ABC Co. change from cash basis of accounting to the accrual basis of accounting during 2021. The…

A: Prior Period Item: The term 'prior period items,' as described in this Standard, solely refers to…

Q: Differential fiscal year from calendar year. In contrast with cash basis accounting, what is accrual…

A: Solution:- Calendar year means"- A calendar year is a one-year period . In other words calendar year…

Q: The following information is available from the current period financial statements: Net income $…

A: Increase in accounts receivable implies more revenue has been reported in the income statement than…

Q: The aging method is closely related to the: a.statement of cash flows. b.statement of financial…

A: Aging Method: The aging method usually refers to the technique for estimating the number of a…

Q: For purposes of adjusting financial statements for changes in the general price level, monetary…

A: Explanation: Adjusting a company’s financial statements to include the amounts of lease payments…

Q: The following information is available from the current period financial statements: Net income $…

A: Cash flow statement provided information about the cash inflows and cash outflows of the company.…

Q: Choose the best accounting treatment for each of the following items. Change from straight-line to…

A: The change in accounting is either changed prospectively or retrospectively. Prospectively means…

Q: What adjustment(s) should be made to reconcile net income to net cash flows from operating…

A: For reconciling the net income with net cash flow from operating activities , we must use the…

Q: Generally accepted methods of accounting for a change in accounting principle include O including…

A: Generally accepted methods of accounting for a change in accounting principle include "Restating…

Question

Changes in accounting estimates are:

Multiple Choice

a)Statement of cash flow items.

b)Accounted for with a cumulative "catch-up" adjustment.

c)Reported as prior period adjustments.

d)Accounted for in current and future periods.

e)Considered accounting errors.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Analyzing Changes in Balance Sheet Accounts Refer to the information for Peterson Inc. above. Required: Indicate whether each of the changes above produces a cash increase, a cash decrease, or is a noncash activity.
Which statement is most directly affected by a change to net income? A. balance sheet B. income statement C. statement of retained earnings D. statement of cash flows
In computing the periods net operating cash flows, why are noncash expenses added back to net income?
Describe the relationship between changes in cash and changes in noncash assets, liabilities, and stockholders equity.
When preparing a statement of cash flows, a decrease in accounts receivable during a period would cause which one of the following adjustments in determining cash flow from operating activities? Direct Method Indirect Method IncreaseDecrease DecreaseIncrease IncreaseIncrease DecreaseDecrease
What adjustment(s) should be made to reconcile net income to net cash flows from operating activities using the indirect method, considering the following balances in current assets? Accounts receivable, beginning of year $19,734 Accounts receivable, end of year $25,278 Prepaid insurance, beginning of year $11,726 Prepaid insurance, end of year $6,229
Using the indirect method, which of the following adjustments to convert net income to net cash provided by operating activities is correct? Add to Net Income Deduct from Net Income Prepaid Expenses increase decrease Taxes Payable decrease increase Inventory decrease increase Accounts Receivable increase decrease
Fill in the blanks: For calculating cash flow from operating activities, provision for doubtful debts is ________________ the profit made during the year (added to/deducted from).