QUESTION:Presenting consolidated financial statements this year when statements of individual companies were presented last year is

1. A correction of an error.
2. An accounting change that should be reported prospectively.
3. An accounting change that should be reported by restating the financial statements of all prior periods presented.
4. Notanaccountingchange.

QUESTION:The following computations were made from Clay Co.'s 2009 books: What was the number of days in Clay's 2009 operating cycle?

Number of days sales in Inventory: 61

Number of days sales in trade accounts receivable: 33

1. 33.
2. 47.
3. 61.
4. 94.

QUESTION:An entity purchased shares of its $100 par stock for retirement that was originally issued at $200 per share. The entity repurchased the stock for $250 per share. Upon retirement, which of the following accounts would NOT be affected?

1. Paid-in capital.
2. Common stock.
3. Treasury stock.
4. Retained earnings.