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ACCT 312 Week 5 Quiz

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Question :

	Student Answer:		prior years only.
			prior years plus the current year.
			the current year only.
			current and future years.

Question 2.

Question :

(TCO 7) When the retrospective approach is used for a change to the FIFO method, which account is usually not adjusted?

	Student Answer:		Deferred Income Taxes
			Inventory
			Retained Earnings
			All of the above usually are adjusted.

Question 3.

Question :

(TCO 7) Our company switched from double-declining balance depreciation to straight-line depreciation. As a result,

	Student Answer:		current income tax payable increases.
			the cumulative effect decreases current period earnings.
			prior periods’ financial statements are restated.
			None of the above

Question 4.

Question :

(TCO 7) A change that uses the prospective approach is accounted for by

	Student Answer:		implementing it in the current year.
			reporting pro forma data.
			retrospective restatement of all prior financial statements in a comparative annual report.
			giving current recognition of the past effect of the change.

Question 5.

Question :

(TCO 7) Which change should be accounted for using the retrospective approach?

	Student Answer:		A change in the estimated useful life of a depreciable asset
			A change from straight-line to double-declining-balance depreciation
			A change to LIFO from FIFO inventory costing
			A change from percentage-of-completion to the completed contract method