1. Disclosure of a retrospective adjustment should include

a. the net impact on assets of the retrospective adjustment.

b. ending balance in Retained Earnings before and after the retrospective adjustment.

c. why the new principle is preferable.

d. the retrospective computation of earnings per share only for the current period.

2. An example of a change in accounting principle is the change from the direct method of accounting for uncollectable accounts to the aging-of-receivables method. ( true or false?)

3. A change in unit depletion rate would be accounted for as a

a.change in accounting estimate effected through a change in accounting principle.

b.change in accounting estimate.

c. correction of an accounting error.

d. change in accounting principle.

4.

Walter Co. made the following errors in 2016:

	Ending inventory was overstated by $2,000.
	Beginning inventory was understated by $6,000.
	Purchases were overstated by $3,000.

Reported net income was $20,000. What is the correct amount of 2016 net income?

a. $21,000

b. $4,000

c. $19,000

d. $15,000

4. Leah Co. reported $7,000 of net income for 2016. The following errors were then discovered:

	Ending 2015 accrued expense was understated by $800.
	Ending 2016 unearned revenue was overstated by $75.
	Ending 2015 unearned revenue was overstated by $380.

Ignoring income taxes, what is the correct amount of 2016 net income?

a. $5,895

b. $6,505

c. $6,655

d. $7,495