1.Which of the following is NOT considered to be an accounting change?

a.correction of a prior period error

b.change in the composition of the board of directors

c.change in accounting policy

d.change in accounting estimate

2.Which of the following is NOT considered to be an accounting error?

a.changing from the cash basis to the accrual basis

b.expensing the cost of a new machine

c.changing depreciation methods from declining balance to straight line

d.failing to accrue wages payable at year end

3.Which of the following alternative accounting methods is(are) allowed by ASPE and IFRS for reporting accounting changes?

a.current and prospective

b.current and retrospective

c.retrospective only

d.prospective and retrospective

4.Which of the following is (are) the proper time period(s) to record the effects of a change in accounting estimate?

a.retrospectively only

b.current period and prospectively

c.current period and retrospectively

d.current period only

5.Accounting for aretrospectivechange requires

a.adjusting the opening balance of each affected component of equity for the current year.

b.reporting the "catch-up" adjustment on the current income statement.

c.reissuing all prior financial statements affected by the change.

d.adjusting the ending balance of retained earnings for the current year.