Why does a change in accounting principle require justification?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

See More Books

Question Posted: Jan 29, 2012 12:05 AM

See More Questions

1. A change in accounting principle from one that is not generally accepted to one that is generally accepted should be treated as a) An error and corrected by prior period adjustment b) A change in...
Why does a change in the number of active motor units not result in a proportional change in muscle tension?
Why does a change in the foreign real interest rate lead to a shift of the AD curve?
Given that, VDD = 5V, VTN = 0.4 V, kn = 100 A/V, An = 0.02 V-, () = 80, R = 4 kN, R = 0.5 MN, R3 = 4.5 M, and assume that the current through R and R3 is negligible compared to IDs. 1) Find Vo. For...
Quantitative noninvasive techniques are needed for routinely assessing symptoms of peripheral neuropathies, such as carpal tunnel syndrome (CTS). The article "A Gap Detection Tactility Test for...
Sonia is 45 and has a satisfying job in the international management of an Oil Company earning 65,000. She is married to Tom who is 58 and recently retired from a finance post in the City of London...
If a normal-shaped population with m 5 40 and s 5 5 is shown in a frequency distribution graph, how would the mean and standard deviation be represented? a. The mean is represented by a vertical line...
On January 3, 2018, Rapid Delivery Service purchased a truck at a cost of $100,000. Before placing the truck in service, Rapid spent $3,000 painting it, $600 replacing tires, and $10,400 overhauling...
Fill out charts Check my work Required information [The following information applies to the questions displayed below) Milea Incorporated experienced the following events in Year 1, its first year...
a. Identify the time at which Nike recognizes revenues. Does this timing of revenue recognition seem appropriate? Explain. b. Identify the cost-flow assumption(s) that Nike uses to measure cost of...
a. List several examples of changes in accounting principle that a company may make. b. Explain briefly the proper accounting treatment for recognizing currently a change in accounting principle.
a. When should the effects of a change in accounting principle be reported only as a direct adjustment to the current years beginning Retained Earnings balance? b. When should the effects of a change...
Detail the steps for identifying the issue(s) in a client's case.
Q3. (a) Sketch and name the road structure layers including the bituminous coating layers. State the material's CBR value and the degree of compaction (DOC) for each road layer required by road works...
2. Justify the following in terms of impulse and momentum: a. Why are padded dashboards safer in automobiles?
The kidneys are an essential organ to regulating blood pressure in the cardiovascular system. Renal epithelial cells feature cilia on their surface, which allows them to sense blood flow in the...
Novak Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials 9 square yards...
Develop a one-week schedule for your Housekeeping employees. Using the Excel spreadsheet that is attached above, you will prepare a schedule for the week The day-by-day occupied rooms forecast has...
As a team, select an industry to analyze. MarketGuide provides lists of industries and their makeup at www.marketguide.com/mgi/INDUSTRY/INDUSTRY.html. Each group member should acquire the annual...
What are the principal alloying elements in SAE 4340 steel?
Why has the price of most computers and other electronic products been falling over the past several years while the demand for these products has been rising at the same time?
The following statement appeared in a financial magazine: RRAor Rah-Rah, as its sometimes dubbedhas kicked up quite a storm. Oil companies, for example, are convinced that the approach is misleading....
Shum way Oil uses successful-efforts accounting and also provides full-cost results as well. Under full-cost, Shum way Oil would have reported retained earnings of $42 million and net income of $4...
Shum way Oil uses successful-efforts accounting and also provides full-cost results as well. Under full-cost, Shum way Oil would have reported retained earnings of $42 million and net income of $4...
Hrubec Products, Incorporated, operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of pulp follow: Selling...
The AICPA guidelines suggest that taxes should be transparent and visible. This means that: a. The taxes affect similarly situated taxpayers in a similar manner. b. Taxes should be due at the same...
What is Apple Companys strategy for success in the marketplace? Does the company rely primarily on customer intimacy, operational excellence, or product leadership? What evidence supports your...

Why does a change in accounting principle require justification?

Question:

Step by Step Answer:

Financial statements best serve the needs of users when they are com...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions