Question 2

1. Which of the following is a noncounterbalancing error?

   		Recording interest expense as a decrease to notes payable.
   		Recording a full year of straight line depreciation when PPE was purchased in August.
   		Recording ending inventory higher than it should be.
   		Recording revenue before the work is completed.

Question 3

1. What is the retrospective approach for adjusting for changes in accounting principle?

   		Making the changes to the current and future years because of missing information.
   		Making the changes to the current and past year for comparison purposes.
   		Making the changes to the current and all prior years since the old principle was chosen.
   		Making the changes to the current and other years shown on the financial statements.