State how each of the following items is reflected in thefinancial statements.(a) Change from FIFO to LIFO method for inventoryvaluation purposes.(b) Charge for failure to record depreciation in a previousperiod.(c) Litigation won in current year, related to prior period.(d) Change in the realizability of certain receivables.(e) Write-off of receivables.(f) Change from the percentage-of-completion to thecompleted-contract method for reporting net income.

Q: Both IFRS and U.S. GAAP apply the lower of cost or market method for reporting inventory values. If…

A: LCM Method: Termed as Lower of Cost or Market, this method explains that the inventory of a company…

Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…

A:

Q: Which of the following events could not coincide with the recognition of an expense? O The…

A: Expenses means the amount spent on running the business. Expense will decrease our profits and shown…

Q: on-recording of purchases during the current and the non-inclusion of the goods purchased in ending…

A: Errors in accounting are the mistakes conducted while entering the accounting transactions in the…

Q: Does the term last-in in the LIFO method mean that the items in the inventory are assumed to be the…

A: LIFO: LIFO stands for Last in First out. For inventory valuation this method is used.

Q: Non-recording of purchases during the current and the non-inclusion of the goods purchased in ending…

A: Purchases refers to process of acquiring required materials or trading goods by an entity which…

Q: An understatement of the ending inventory in Year 1, if not corrected, will cause which of the…

A: solution concept Understatement of ending inventory               Ending inventory appears in the…

Q: DEPRECIATION METHODS

A: Depreciation expense = (Cost - Salvage value)/Number of years of useful life Given that, Cost =…

Q: Which one of the following statement about encumbrance is correct? a. Encumbrances are equivalent to…

A: Encumbrances denote the estimated expenditures before the actual expenditure is occurred. It…

Q: Which of the following would NOT be reflected in the income statement?

A: Income statement- it is a part of financial statements prepared by the company that shows the…

Q: Which one of the following items is not included in the determination of income from continuing…

A: Income from continuing operations:

Q: One of the following is not a transaction deemed sale and is therefore not subject to VAT.  Which is…

A: The answer is stated below:

Q: All sales and purchases for the year at Ross Corporation are credit transactions. Ross uses a…

A:

Q: Which of the following is reported as other comprehensive income in accordance with PAS 1,…

A: Lets understand the basics. As per PAS 1 "Presentation of financial statement", following items…

Q: For each of the following inventory errors occurring in 2018, determine the effect of the error on…

A: Retained earnings means the amount of profit left to company which has been left after paying…

Q: which of the following is not true regarding standards for interim reporting? a. declines in…

A: The interim reporting refers to the reporting under which the financial reports for a shorter period…

Q: Which of the following transaction is not recorded in the general journal? Select one: A. All of…

A: Correct option is A i.e.  All of the above

Q: Recording of next year's purchases as purchases of the current year will Group of answer choices…

A: Since there are multiple questions posted we will answer the first question for you as per the…

Q: BJ Company uses a periodic inventory system. If the company?'s beginning inventory in the current…

A:

Q: Which statement is not true about the gross profit method of inventory valuation? None of these It…

A: Inventory is one of the important current asset of the business. Valuation and management of…

Q: Reversals of inventory write-downs may exceed the amount of the original write-down previously…

A: Inventory:- Inventories are shown in asset side of balance sheet as a current asset. It shows the…

Q: Discuss how a change to the LIFO method of inventory valuation is handled when it is impracticable…

A:

Q: When the retrospective approach is used for a change to the FIFO method, which of the following…

A: Retrospective approach: It implies to the application of new principles of accounting while…

Q: When a company changes its inventory method to LIFO, an exception is made for the way accounting…

A: Explain the difference in the accounting treatment of a change to the LIFO inventory method from…

Q: Discuss how, in choosing the accounting methods below, the following ratios can be affected – rate…

A: Answer: •The return on assets shows the percentage of how profitable a company's assets are in…

Q: Which of the following items would we report in the income statement just before net income? a.…

A: Income statement:   The financial statement which reports revenues and expenses from business…

Q: Which of the following will be affected by an increase in the provision for doubtful debts? Gross…

A: The question is multiple choice question  Required  Choose the Correct Option.

Q: Which of the following requires an adjustment to the opening balance of retained earnings in the…

A: The term "retrospective effect" refers to the application of a change in principle to financial…

Q: What is the effect of a $51000 overstatement of last year's inventory on current years ending…

A: When there is overstatement of ending inventory occurs, the costs of goods sold (COGS) are stated…

Q: 2. Gabriela Company’s auditor discovered that the company inadvertently overstated ending Inventory…

A: Inventory means the goods in which the business deals. Inventory should be valued correctly  as it…

Q: Which of the following are examples of changes in the gross carrying amount of financial instruments…

A: Here topic related with the credit risk management practices.  It is important for the entity to…

Q: adjustment to the perpetual inventory records. Give any entry record the final disposition of any…

A: Perpetual inventory system is the system of recording the level of inventory at a continuously means…

Q: Does the term last-in in the LIFO method mean that the items in the inventory are assumed to be the…

A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…

Q: Which of the following statements is not true concerning interim financial reporting and…

A: Companies that use the LIFO method may encounter a liquidation of base period inventories at an…

Q: Which of the following account should be recorded as a creditor in the inventory record to be made…

A: Creditor :  The term 'creditor' shows the customer from whom the goods or services had been taken on…

Q: Rustic Company has recognized an impairment loss on the value of inventory. If the inventory's value…

A: there is difference in the requirement of and recording of inventory as per ifrs and US GAAP . gaap…

Q: If consignment inventory is unsold at the end of the period, who reports the ending inventory on the…

A: Consignment inventory is a property of consignor and the consignor will have all the rights with…

Q: Explain the accounting treatment of material inventory errors discovered in an accounting period…

A: Materials inventory: Material inventories are the primary materials which are used in the…

Q: Which of the following accounting principle changes typically is reported prospectively? Changing…

A: Accounting principles are the set of standards and rules followed by the accountant and companies…

Q: Which of the following is not a retrospective-type accounting change? A. Cost recovery method to…

A: Answer is option D) D. Percent of sales method to aging method in recognizing doubtful accounts.…

Q: Which of the following is a limitation of the direct write-off method of accounting for…

A: Direct write-off method: This method does not make allowance or estimation for uncollectible…

Q: An entity uses periodic inventory system and neglected to record a purchase of merchandise on…

A: The periodic inventory system records the purchase of inventory of inventory on account as debit…

Q: Indicate the section of a multiple-step income statementin which each of the following is shown.(a)…

A: Income statement:

Q: An example of a correction of an error is a change: a. From FIFO inventory valuation to the average…

A: Accounting:- Accounting is defined as the process of recording, summarizing, interpreting and…

Q: Requesting a statement from a major customer as to its agreement or disagreement with a year-end…

A: Auditing means the independent checking of company operation by outsider. Auditor is a qualified and…

Q: Explain why errors in the valuation of inventory at the endof the year are sometimes called…

A: The errors in the valuation of ending inventory result in underestimate or overestimate the ending…