Which of the following should NOT be reported retroactively?
a. Use of an unacceptable accounting principle, then changing to an acceptable accounting principle
b. Correction of an overstatement of ending inventory made two years ago
c. Use of an unrealistic accounting estimate, then changing to a realistic estimate
d. Change from a good faith but erroneous estimate to a new estimate
D
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A company reports inventory using the lower of cost and net realizable value. Below is information related to its year-end inventory:InventoryQuantityCostNRVUnit A10$30$32Unit B184340Unit C122327Unit D151817Calculate ending inventory under the lower of cost and net realizable value and record any necessary adjustment to inventory.
What will be an ideal response?
The practice of carefully timing the recognition of revenues and expenses to even out the amount of reported earnings from one year to the next is called
a. revenue recognition. b. income smoothing. c. restructuring. d. accrual-basis accounting.
Research by Marriott Hotels indicates that four of the five top factors contributing to customer loyalty come into play during the first 10 minutes of service delivery
Indicate whether the statement is true or false
Liquidation bankruptcy or straight bankruptcy is also known as:
A) Chapter 7. B) Chapter 11. C) Chapter 13. D) Chapter 15.