How should the bank report this accounting change

Assignment Help Accounting Basics
Reference no: EM131118235

1. Lenexa State Bank has followed the practice of capitalizing certain marketing costs and amortizing these costs over their expected life. In the current year, the bank determined that the future benefits from these costs were doubtful. Consequently, the bank adopted the policy of expensing these costs as incurred. How should the bank report this accounting change in the comparative financial statements? 

Reference no: EM131118235

Questions Cloud

Discuss how a change to the lifo method of inventory : Discuss how a change to the LIFO method of inventory valuation is handled when it is impracticable to determine previous LIFO inventory amounts.
What difficulties develop in assessing prefer ability : The auditor indicates that a change would be permitted only if it is to a preferable method. What difficulties develop in assessing prefer ability?
How does this information affect the financial statements : How does this information affect the financial statements to be prepared at the end of 2010?
Indicate how the following items are recorded : Indicate how the following items are recorded in the accounting records in the current year of Coronet Co.
How should the bank report this accounting change : How should the bank report this accounting change in the comparative financial statements?
Define a change in estimate and provide an illustration : Define a change in estimate and provide an illustration. When is a change in accounting estimate effected by a change in accounting principle?
What is the indirect effect of a change in accounting : What is the indirect effect of a change in accounting principle? Briefly describe the reporting of the indirect effects of a change in accounting principle.
Compute the amounts of these ratios for fiscal year 5 : Assess the changes in the long-term solvency risk of Abercrombie & Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5. Compute the amounts of these ratios for fiscal Year 5.
Identify and describe the approach the fasb requires : Identify and describe the approach the FASB requires for reporting changes in accounting principles.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Define demographics-psychographics and market segmentation

Define demographics, psychographics, and market segmentation. Using the scenario as an example, identify and analyze (at a summary level) 2 potential target segments using demographics and psychographics that may meet the bank's high-level strategi..

  What characteristics of the product or manufacturing

what characteristics of the product or manufacturing process would lead a company to use a process costing system? give

  Manteca inc produces two types of speakers deluxe and

manteca inc. produces two types of speakers deluxe and regular. manteca uses a plantwide rate based on direct labor

  Prepare an income statement

Prepare an income statement

  Is it significant for company to follow strict budget even

is it important for a company to follow a strict budget even though they may be experiencing phenomenal profits? do you

  What is the project npv

Also, some new working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV?

  Personal budget-balance sheet-cash flow statement

Prepare a personal budget, balance sheet, and cash flow statement. Write a memo that includes the following:

  Shadow services uses the accrual method and reports on a

shadow services uses the accrual method and reports on a calendar year. this year shadow agreed to a uniform cleaning

  In the audit of potomac mills the auditors wish to test the

in the audit of potomac mills the auditors wish to test the costs assigned to manufactured goods. during the year the

  What types of contractual obligations must be disclosed

What types of contractual obligations must be disclosed in great detail in the notes to the balance sheet? Why do you think these detailed provisions should be disclosed?

  The following account appears in the ledger after only part

the following account appears in the ledger after only part of the postings have been completed for march work in

  Combinations create or destroy value

Identify one company and describe its experiences with mergers/acquisitions. Did these combinations create or destroy value? Why? For this exercise use Dell, Nike, United Airlines, eBay, Southwest Airlines, Blockbuster, Apple or another company

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd