22. Which of the following is an example of a change in accounting principle D. A ctbarnge in tho actubarka..afe espectancies of mplery-es under pension plan. 23. Adams Inc purchased a machine for $100,000 on lanuary 1, 2016. Adams depreciates machines of this type by the straight-line method over a 10 year period using no salvage value. Due to a chan in sales patterns, on January 1, 2018, management determines the useful life of the machine to total of five years (remember two years have already been depreciated), What amount should Adams record for depreciation expense for 20187 A. $17,778 B. $26,667 C. $16,000 D. $20,000 24. Which of the following statements is not true regarding the correction of an errori? A. A journal entry is needed to correct any account balances that are incorrect as a result of the error. Prior years' financial statements are restated to reflect the correction of the error (if the error affected those statements) A disclosure note should describe the nature of the error and the impact of its correction on me B. C. income, income before extraordinary items, and earnings per share D. The correction is reported prospectively and previous financial statements are not revised. 25. The primary objective of the statement of cash flows is to provide information about a compan A. Profitability. B. Noncash financing and investing activities C. Cash receipts and disbursements. D. Financial position 19. On January 1, 2018, Polk Post had 300,000 shares of its common stock issued and outstanding. Polk on July 1, 2018, On October 1, 2018, Polk retired 12,000 of its common issued a 10% stock dividend shares for Polk to use in the denominator of the basic EPS fraction? A 327,000 When calculating basic earnings per share for 2018, what is the appropriate number of & 312,000 342.000 D. 303,000 20. Van Buren Industries had 100,000 shares of common stock and 10,000 shares of 8%, S100 par stock outstanding during the year. Net income for the year was $400,000 and convertible preferred dividends were paid to both common and preferred shareholders. Each share of preferred stock is convertible into five shares of common. What is Van Buren's diluted EPS (rounded)? A $2.67 8. $3.20 C. $4.80 D. $2.13 21. Which of the following would not be accounted for using the retrospective approach? A. A change from the completed contract method to the percent-of-completion method for long- term construction contracts. B. A change from LIFO to FIFO inventory costing C. A change in depreciation methods. D. A change from US GAAP to IFRS
