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NEW QUESTION: 1
The effect of a change in accounting principle that is inseparable from the effect of a change in accounting
estimate should be reported:
A. As a separate disclosure after income from continuing operations, in the period of change and future
periods if the change affects both.
B. As a correction of an error.
C. By restating the financial statements of all prior periods presented.
D. As a component of income from continuing operations, in the period of change and future periods if the
change affects both.
Answer: D
Explanation:
Choice "c" is correct. A change in accounting principle that is inseparable from a change in accounting
estimate should now be reported as a change in estimate and thus as a component of income from
continuing operations, in the period of change and future periods if the change affects both. Distinguishing
between a change in accounting principle and a change in accounting estimate is sometimes difficult. For
example, a company may change from deferring and amortizing a cost to recording it as an expense
when incurred because future benefits of the cost have become doubtful. The new accounting method is
adopted, therefore, in partial or complete recognition of the change in estimated future benefits. The effect
of the change in principle is inseparable from the effect of the change in estimate. Changes of this type
are often related to the continuing process of obtaining additional information and revising estimates and
are therefore considered as changes in estimates. Choice "a" is incorrect. Restating the financial
statements of all prior periods would be done in the case of prior period adjustments (corrections of
errors), changes in accounting principle (retrospective application), and changes in accounting entity
(retrospective application). Choice "b" is incorrect. Correction of an error would be treated as a prior
period adjustment. Choice "d" is incorrect. Separate disclosure after income from continuing operations
would be done in the case of extraordinary items or discontinued operations. However, this disclosure
would not be made "in the period of change and future periods if the change affects both" but only in the
period of the extraordinary item or discontinued operation.
NEW QUESTION: 2
A. Storage Explorer
B. Computer Management
C. File Server Resource Manager (FSRM)
D. System Configuration
E. File Explorer
F. Server Manager
G. Shared Folders
H. Disk Management
Answer: E
NEW QUESTION: 3
You have been asked to use a 23-bit network mask to segment the network block .
How many usable host addresses will there be per subnet?
A. 0
B. 1
C. 2
D. 3
Answer: A
NEW QUESTION: 4
A. Amazon Aurora
B. Amazon DynamoDB
C. Amazon Redshift
D. Amazon S3
Answer: B
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