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 equipment B. A change from cash basis to accrual basis of accounting C. A change from expensing immaterial expenditures to deferring and amortizing them when material. D. A change in inventory valuation from FIFO to average method

Q: An adjustment, to the carrying amount of a non-current asset that ceases to be classified as ‘held…

A: If the noncurrent asset is classified as held for sale, it would be recorded in the income from…

Q: Preparation of adjusting entry for depreciation is supported by which principle/concept/assumption?…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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: The following statements relate to the depreciation of property, plant and equipment. Which…

A: Lets start with basic understanding. Depreciation is a reduction in value of asset due to wear and…

Q: If it is impracticable to determine the cumulative effect of an accounting change to any of the…

A: There are situations when company adopt to new method of accounting due to which changes occur in…

Q: Which of the following is an expense in the current accounting period under accrual accounting?…

A: We know that under accrual basis of accounting, incomes and expenses are recorded as and when they…

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: Explain is a change in depreciation method a change in accounting principle, or is it a change in…

A: According to the Accounting Standard 1-  the change in the method of depreciation is a change in the…

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 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: 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: Under the reporting requirements for impaired assets, impairment losses for assets to be held and…

A: Under the reporting requirements for impaired assets, impairment losses for assets to be held and…

Q: The entry to record depreciation is an example of an adjusting entry: a. to apportion a  recorded…

A: Depreciation is the reduction in the value of asset due to its normal use and tear and wear. It is…

Q: Accounting The account "Net-Assets: Resources Released from Restriction" is used to: A) Reduce…

A: Correct option with proper explanation are as follows

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: Does the correct (reconciled), adjustment, or adjusted ending balance:  increase total assets or…

A: Introduction:-  Assets: An asset is an useful resource that a person, company, or country possesses…

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: Prepaid expenses Required: Each of the following statements may (or may not) describe one of these…

A: Match the terms with the given Statements. Required  Each of the following statements may (or may…

Q: Identify the accounting assumption or principle that is described below. Is the rationale for why…

A: Definition: Going concern assumption: The going concern assumption emphasizes the longevity of the…

Q: Companies that use IFRS: a.    must report all their assets on the statement of financial position…

A: IFRS: IFRS - International Financial Reporting Standards. It consists of a set of accounting rules…

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 name of the accounting concept or principle that determines the amount initially entered…

A: Accounting for an entity is generally governed by various accounting concept that are generally…

Q: The following are the typical classifications used in a balance sheet: a. Current assets b.…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: Which depreciation method is most frequently used in businesses today? Select one: a. Straight-line…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Which of the following is not a type of adjusting entry? a. Depreciation of long-term physical…

A: In accounting, adjusting entries are journal entries usually made at the end of an accounting period…

Q: The omission of an adjusting entry for the depreciation of equipment will have what effect on the…

A: Depreciation represents the reduction in the value of the long term asset over a useful period of…

Q: Choose the correct. How are assets to be reported when the liquidation basis of accounting is being…

A: Assets cannot be reported at its fair value, book value (cost less accumulated depreciation), or…

Q: With reference to the conceptual framework for accounting, explain the nature of goodwill and how…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Depreciation is considered as accounting policy and operational expense for the accounting period.…

A: Depreciation records the usage of a fixed asset over a period of time and allocates its cost to the…

Q: A company has decided to change its depreciation method to better reflect the pattern of use of its…

A: As per Generally accepted accounting principles, using an appropriate method for applying…

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

A:

Q: Which of the following statements is correct regarding income reporting under IFRS?(a) IFRS does not…

A: The correct option is C. For reporting income under IFRS, companies have to classify its expenses…

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: A change in depreciation method is a______. Select one: a. change in accounting standard b. change…

A: A change in accounting policy may be necessary to enhance the relevance and reliability of…

Q: Which of the following is used when computing for the accounting rate of return (ARR)? a. Income…

A: The accounting rate of return is the average net income an asset is expected to generate on the…

Q: A company wishes to report the highest earnings possibleaccording to GAAP. Therefore, when…

A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…

Q: Which of the following statements is correct?   Options: • Prepayments of supplies initially…

A: Solution: "If unpaid expenses incurred during the accounting period are not accrued, the income for…

Q: XYZ Inc. changes its method of valuation of inventories from weighted-average method to first-in,…

A: Changes method of valuation of inventories from  weighted average method to FIFO method. If company…

Q: The term income a. includes revaluation of land b. includes adjustment of prior period error c.…

A: Income Statement An income statement refers to an important financial statement that provides…

Q: Which of the following should be treated as a change in accounting policy?  A change is made in the…

A: General accepted accounting principles means those set of standards which is followed while…

Q: Which of the following is not an example of a change in accounting principle? Multiple Choice A…

A: You should change an accounting principle only when it is necessary to use an accounting framework…

Q: When an entity adjusted the historical cost income statement by applying specific price index to…

A: This question is answered as per Inflation accounting.

Q: A) In accounting for the acquisition of assets, the assets acquired are to be recorded at the ‘cost…

A: Introduction: The cost of acquisition of an asset comprises 1) its purchase price, including import…

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…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.