(v) Change in Method of Depreciation is regarded as change in Accounting Policy of the entity.
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Q: True or false The change in depreciation method is a change in accounting policy.
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- True or false The change in depreciation method is a change in accounting policy.When it is probably that future economic benefits associated with an asset will flow to the entity, and the costs can be reliably measured, it should be recognised as an asset. A change in depreciation method is a. a) Change in accounting standard b) Change in accounting policy c) Change in accounting estimate d) Change in accounting method1. How to determine whether a company's assets have been overstated using only its financial statements? Provide concreate answers with examples
- Explain is a change in depreciation method a change in accounting principle, or is it a change in estimate?1(a) State with reason whether the following statements are true or false (i) Change in Method of Depreciation is regarded as change in Accounting Policy of the entity. (ii) Depreciation is non-cash and non- operating expense which is to be provided for whether there are profits/losses. (iii) Net Profit is reflected in higher cash balances and net loss is reflected in lower net worth. (iv) Contingent liability is an ascertained liability but its amount and due date are indeterminate. (v) Fundamental Assumptions are always required to be disclosed in the financial statements.Which of the following is accounted for as a change in accounting policy? A. A change in the estimated useful life of property, plant and equipmentB. A change from cash basis to accrual basis of accountingC. A change from expensing immaterial expenditures to deferring and amortizing them when material.D. A change in inventory valuation from FIFO to average method
- A) In accounting for the acquisition of assets, the assets acquired are to be recorded at the ‘cost of acquisition’. How would you determine the ‘costs of acquisition’ of an asset?B)How are changes in accounting policies accounted for and disclosed?When a company changes from the straight-line method of depreciation for previously recorded assets to the double declining balance method, which of the following should be reported?Cumulative effects of change in accounting principle, Pro forma effects of retroactive applicationa. No Nob. No Yesc. Yes Yesd. Yes NoWhich of the following would NOT be reflected in the income statement? Group of answer choices A.Correction of an error in previously issued financial statements B.Loss on disposal of a segment of a business C.Cumulative effect of a change in depreciation methods D.An extraordinary item
- Choose the correct. How are assets to be reported when the liquidation basis of accounting is being applied?a. At cost less accumulated depreciation.b. At the estimated amount of cash to be received.c. At fair value.d. At the lower of cost or market value.When do we apply depletion in accounting? Discuss its use. What is the difference between depreciation and impairment?Earnings per share should be reported separately for a).depreciable assets. b).discontinued operations. c).an error in applying generally accepted accounting principles. d).changes from one generally accepted accounting principle to another.
