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The four kinds of accounting changes, including error correction, are
change in accounting principle;change in accounting estimate;change in reporting entity; anderror correction.
Required: The subsequent are a series of situations. Show the type of change 1 Changing the companies incorporated in combined financial statements2 Change in both acceptable and estimate accounting principles3 Change from showing nonconsolidated to consolidated financial statements4 Change from FIFO to LIFO inventory processes5 Change in amortization period for intangible asset6 Change due to failure to identify an accrued (uncollected) revenue7 Change due to charging a new asset directly to an expense account8 Change due to under-statement of inventory9 Change from straight line to sum-of-the-years'-digits method of depreciation10 Change in residual value of a depreciable plant asset11 Show change in the loss rate on warranty costs12 Change in life of a depreciable plant asset13 Change due to failure to identify and accrue income14 Change in expected recovery of an account receivable15 Change from expensing to capitalizing certain costs, due to a modification in periods benefited
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Evaluate the selling price and produce a contribution margin per
Prepare the entry Doeby will record to reflect this additional acquisition.
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Evaluate the basic EPS and the diluted EPS for Peak Performance
Evaluate net income and ratios
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Ethical Dilemma What's an expense?
Knowledge about the behavior pattern of a cost is important to understanding the effect on net income of a change in sales volume because as sales volume changes and When a firm has financial leverage
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