S1: A change in accounting estimate is accounted for as a prior period adjustment to the opening balance of retained earnings. S2: A change in depreciation method is to be treated as a change in accounting policy A. True, True B. False, False C. True, False D. False, True

S1: A change in accounting estimate is accounted for as a prior period adjustment to the opening balance of retained earnings. S2: A change in depreciation method is to be treated as a change in accounting policy A. True, True B. False, False C. True, False D. False, True

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 1MC: The cumulative effect of an accounting change should generally be reported as an adjustment to the...

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Question

S1: A change in accounting estimate is accounted for as a prior period
adjustment to the opening balance of retained earnings. S2: A change in
depreciation method is to be treated as a change in accounting policy

A. True, True
B. False, False
C. True, False
D. False, True

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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