15.Which of the following will NOT lead to a prior period adjustment:

Multiple Choice

• Correction of an error in the ending inventory from last year.

• Correction of an error in insurance expense from last year.

• Correction of an error in depreciation expense from last year.

• Correction of an error in recording a long-term asset as a current asset from last year.

4.Which of the following is not one of the approaches for reporting accounting changes?

Multiple Choice

• The prospective approach.

• All of these answer choices are approaches for reporting accounting changes.

• The modified retrospective approach.

• The retrospective approach.

8.Which of the following differences between financial accounting and tax accounting ordinarily creates a deferred tax liability?

Multiple Choice

• All of these answer choices are correct.

• Accrual of estimated operating expenses.

• Prepaid operating expenses, currently deductible.

• Subscriptions collected in advance.