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NEW QUESTION: 1
In which of the following situations should a company report a prior-period adjustment?
A. A switch from the straight-line to double-declining balance method of depreciation.
B. A change in the estimated useful lives of fixed assets purchased in prior years.
C. The scrapping of an asset prior to the end of its expected useful life.
D. The correction of a mathematical error in the calculation of prior years' depreciation.
Answer: D
Explanation:
Choice "b" is correct. Prior period adjustments consist of: corrections of errors in the financial statements
of prior periods, retroactive restatements required by new GAAP pronouncements, and changes from a
non-GAAP method of accounting to a GAAP method of accounting (which are corrections of errors).
Choice "a" is incorrect. This change is a change in accounting estimate. Choice "c" is incorrect. This
change is a change for one GAAP method of depreciation to another GAAP method of depreciation.
Under SFAS No. 154, it is treated as a change in accounting estimate effected by a change in accounting
principle and is handled prospectively, and not as a prior-period adjustment. Choice "d" is incorrect. This
is a business activity ordinary in nature.
NEW QUESTION: 2
Fill in the blank.
Define the Tabular Report.
Answer:
Explanation:
See the answer below
Explanation/Reference:
Explanation: Provides a simple listing of your data without subtotals. The only format that has a floating report header.
NEW QUESTION: 3
Which three options are the purpose of change management? (Choose three.)
A. To ensure that all authorized changes support business needs and goals.
B. To help increase the adoption of the technology solution.
C. To guarantee business risk is managed and minimized.
D. To ensure that standardized methods and procedures are used for efficient and prompt handling of all changes.
E. To guarantee risks related to the business need disappear.
Answer: A,C,D
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