The investors view on a company’s ethics that changes its accounting methods every year.

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Answer 1

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Chapter 6, Problem 6.85EIC

1.

To determine

To explain: The investors view on a company’s ethics that changes its accounting methods every year.

2.

To determine

To identify: The accounting principle being violated by changing accounting methods every year.

3.

To determine

To explain: The persons affected by a Company changing its accounting methods too often

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For this example, Zion Corporation discovers the following errors in January 2017 relating to 2016 accounting transactions. The books for the 12 months ending December 31, 2016, are still open. All years prior to January 1, 2016, are closed: 1- A math mistake was made, and depreciation expense is understated by $35,000 for 2016. 2- Zion failed to recognize and accrue salaries payable of $3,000 on 12/31/16. 3- Zion shipped an order to a customer on 12/26/16 for $4,500, but did not record it on the books yet. The sale was on account and the cost of this order to Zion was $2,875. 4- Zion further notices that depreciation expense for years prior to January 1, 2016, is understated by an additional $50,000 5- Cash Payment for Furniture $77 debited to Cash account and credited to Furniture account on 12/14/16. 6- A check for a utility bill (paid with cash) for $146 was incorrectly recorded in the journal as $164 on 12/3/16. 7 -A shipment of…

Answer 2

Question

Chapter 6, Problem 6.85EIC

1.

To determine

To explain: The investors view on a company’s ethics that changes its accounting methods every year.

2.

To determine

To identify: The accounting principle being violated by changing accounting methods every year.

3.

To determine

To explain: The persons affected by a Company changing its accounting methods too often

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Answer 3

Question

Chapter 6, Problem 6.85EIC

1.

To determine

To explain: The investors view on a company’s ethics that changes its accounting methods every year.

2.

To determine

To identify: The accounting principle being violated by changing accounting methods every year.

3.

To determine

To explain: The persons affected by a Company changing its accounting methods too often

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.85EIC

1.

To determine

To explain: The investors view on a company’s ethics that changes its accounting methods every year.

2.

To determine

To identify: The accounting principle being violated by changing accounting methods every year.

3.

To determine

To explain: The persons affected by a Company changing its accounting methods too often

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.85EIC

1.

To determine

To explain: The investors view on a company’s ethics that changes its accounting methods every year.

2.

To determine

To identify: The accounting principle being violated by changing accounting methods every year.

3.

To determine

To explain: The persons affected by a Company changing its accounting methods too often

Answer 6

Chapter 6, Problem 6.85EIC

1.

To determine

To explain: The investors view on a company’s ethics that changes its accounting methods every year.

Answer 7

Chapter 6, Problem 6.85EIC

1.

To determine

To explain: The investors view on a company’s ethics that changes its accounting methods every year.

Answer 8

2.

To determine

To identify: The accounting principle being violated by changing accounting methods every year.

Answer 9

2.

To determine

To identify: The accounting principle being violated by changing accounting methods every year.

Answer 10

3.

To determine

To explain: The persons affected by a Company changing its accounting methods too often

Answer 11

3.

To determine

To explain: The persons affected by a Company changing its accounting methods too often

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 6 - Ravenna Candles recently purchased candleholders...Ch. 6 - Which inventory system maintains a running record...Ch. 6 - How is cost of goods sold classified in the...Ch. 6 - Snyders total cost of goods available for sale...Ch. 6 - Snyders cost of goods sold using the average-cost...Ch. 6 - Snyders ending inventory using the FIFO method...Ch. 6 - Snyders cost of goods sold using the LIFO method...Ch. 6 - Which U.S. GAAP principle or rule would apply if...Ch. 6 - Corrigan Corporation had beginning inventory of...Ch. 6 - Corrigans gross profit for the period is a.79,000....

The investors view on a company’s ethics that changes its accounting methods every year.

Solution Summary: The author explains that a company changing its accounting methods every year affects the trustworthiness of the company.

To explain: The investors view on a company’s ethics that changes its accounting methods every year.

To identify: The accounting principle being violated by changing accounting methods every year.

To explain: The persons affected by a Company changing its accounting methods too often

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Chapter 6 Solutions