The Quick Tab Co. is considering a number of events that may have an effect on the accounting treatments they use. For each of the events in the table below, double-click in the associated shaded cells and select from the lists provided the appropriate description and accounting treatment. Assume that all events are material in amount. A selection may be used once, more than once, or not at all.

Question-1: Change in long-term construction contract from the completed-contract method to the percentage -of-completion method. Give the appropriate description

Select one:

a. Change in long-term construction contract from the completed-contract method to the percentage -of-completion method. Give the appropriate description

b. Change in accounting principle

c. Correction of error

d. Neither a change nor an error correction

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Question 2

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Question 5 : Change in salvage value of a depreciable asset. Give the appropriate description

Select one:

a. Change in accounting estimate

b. Change in accounting principle

c. Correction of error

d. Neither a change nor an error correction

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Question 3

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Question 7 : Change in the useful life of a patent. Give the appropriate description.

Select one:

a. Change in accounting estimate

b. Change in accounting principle

c. Correction of error

d. Neither a change nor an error correction

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Question 4

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Question 9: P Company, incorrectly charged furniture and fixtures for advertisement expenses amounting to $50,000. The error was identified in the year 5. Give the appropriate description.

Select one:

a. Change in accounting estimate

b. Change in accounting principle

c. Correction of error

d. Neither a change nor an error correction

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Question 5

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Question 2: What is the appropriate accounting treatment in this case

Select one:

a. No Impact

b. Current and prospective application

c. Prospective application only

d. Retrospective application

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Question 6

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Question 4: What is the appropriate accounting treatment in this case?

Select one:

a. Current application only

b. Current and prospective application

c. No impact

d. Retrospective application

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Question 7

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Question 6 : What is the appropriate accounting treatment in this case?

Select one:

a. Current application only

b. Current and prospective application

c. No impact

d. Retrospective application

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Question 8

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Question 8 : What is the appropriate accounting treatment in this case?

Select one:

a. Current application only

b. Current and prospective application

c. Prospective application only

d. No impact

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Question 9

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Question 10 : What is the appropriate accounting treatment in this case?

Select one:

a. No Impact

b. Current and prospective application

c. Prospective application only

d. Retrospective application

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Question 10

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Question 3: Write off of uncollectible receivables under the allowance method. Give the appropriate description-

Select one:

a. Change in accounting estimate

b. Change in accounting principle

c. Correction of error

d. Neither a change nor an error correction