Accounting > AS Level Question Paper > Chapter 20 Accounting Changes and Errors (All)

Chapter 20 Accounting Changes and Errors

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1. Most, but not all, changes in accounting principle are reported using the retrospective approach. True False 2. Prior years' financial statements are restated when the prospective approach is us... ed. True False 3. The after-tax cumulative effect on income is no longer required for changes in accounting principles. True False 4. Most changes in accounting principle require a disclosure justifying the change in the first set of financial statements after the change is made. True False 5. All changes reported using the retrospective approach require prior period adjustments. True False 6. All changes in estimate are accounted for retrospectively. True False 7. A change to the LIFO method of valuing inventory usually requires use of the retrospective method. True False [Show More]

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