The correction of errors is the situation that creates prior period adjustments. Explain what are prior period adjustments?

Q: determine the initial recognition, initial measurement, and subsequent measurement ofbonds;

A: The face value of a bond is the fixed maturity value and the coupon is the fixed periodic amount…

Q: Describe the procedure of handling unequal service life problems in Replacement Analysis?

A: Answer: While undertaking the replacement decisions, businesses also consider various alternatives.…

Q: Why is there a need to re-evaluate impairments due to trigger events?

A: When-ever there are any types of assets which are non-tangible assets as well as tangible assets…

Q: What is the difference between adjusting entries and correcting entries? Which method is better and…

A: Difference between adjusting entries and correcting entries:Usually, adjusting entries are needed at…

Q: Define adjustment entries and how they are passed?

A: Adjusting entries are those entries which are made at the end of the accounting period, to record…

Q: What are the major procedural differences in applying the current rate and temporal methods of…

A: The key differences related to monetary assets carried at historical cost. Under the temporal…

Q: Explain the difference between the two types of subsequent events.

A: Subsequent events refers to events which occur after the end of reporting period but before…

Q: The period set is arbitrary. It to understand

A: Payback period is the no. of years required to recover the initial amount invested.

Q: Which of the following is incorrect regarding measurement period?

A: Business combinations are the result of acquisitions or mergers. Here, one party acquires the other…

Q: Differentiate between an originating temporary difference and a reversing difference.

A:

Q: Describe the accounting for correction of errors.

A: The accounting for correction of errors will be explained:

Q: In correction of combined errors, you need to be careful with counterbalancing and non-…

A: Counter Balancing Errors If the effect of an error in one account is cancelled by the effect of one…

Q: Explain the meaning of the following terms: markup,additional markup, markup cancellation, net…

A: Products are priced at the selling price and used to compare different product lines. The selling…

Q: What is the difference between a normal procedure and an extended procedure?

A:

Q: Short-term decisions are viewed as decisions that have short-term impacts and can be changed or…

A: Business decisions that affect the short term plans of a business are known as short-term decisions.…

Q: The purpose of adjustments is to?

A: In simple words, adjusting entries are the changes to the journal entries that are already made in…

Q: Define Deferred Payments.

A: Liabilities:   Liabilities are referred to as the obligation of the business towards the creditors…

Q: Briefly explain the purposes of adjustments.

A: Adjustments (Adjusting entries) : These are made to record the business transactions that has been…

Q: How can Replacement Analysisbe used when the Required Service Period Is Long?

A: Replacement analysis tells a company about the replacement time of an asset. The asset gets obsolete…

Q: Distinguish between counterbalancing and non-counterbalancing errors. Give an example of each.

A: Distinguish between counterbalancing and non-counterbalancing errors. Give an example of each.…

Q: Which is an error of omission

A: Accounting error is error in entering, computing, and analysis of data. This includes the recording…

Q: Define Adjustments

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Name the error which was made under the following circumstances:

A: The error of omission is a type of error that takes the account of results caused due inactions or…

Q: Risk of material misstatements increases if

A: Please see the next step for the solution

Q: correction of prior period

A: (Note: Since you have posted multiple questions, we will solve the first question for you. For the…

Q: What do you mean by adjustment entries ?

A: A journal entry is being used to track a business transaction in a company's accounting records. A…

Q: Give two reasons why delays occur.

A:

Q: What is the difference between ordinary repairs and extraordinary repairs? How should each be…

A: Ordinary repairs are those repairs which are being done in normal course of business to maintain the…

Q: Name the assumption relates to the qualitative characteristic of timeliness? Explain it.

A:

Q: porting period. True or False

A: Production cost report presents the equivalent units of production , production cost and the…

Q: What is an uncorrected misstatement?

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: find the period of deferral in this problem

A: Payments are made every 3 years. First payment occurs after 9 years.

Q: find the period of deferral

A: Period of deferral (K) = NT - 1 where  N = number of times of compounding t = time

Q: artnership should be adjuste

A: Partnership is a type of business. In partnership there are some Reconstruction of partnership event…

Q: What is an aging schedule? What can be learned from it? Does ithave any deficiencies when used to…

A: An aging schedule could be a summarized presentation of assets into separate time brackets that rank…

Q: What are the requirements for a prior period adjustment?

A: Prior period adjustment: A prior period adjustment is the result of a material error discovered in…

Q: Describe the problems that might come from using an incorrect bill of material in MRP.

A: About Bill of Material Once of the most significant master data elements of any manufacturing ERP…

Q: Define Prior Period Adjustments.

A:

Q: Define aging schedule

A: Aging schedule It is the accounting table that indicates the accounts receivables of the company,…