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NEW QUESTION: 1
Answer:
Explanation:
NEW QUESTION: 2
On January 2, 1993, Quo, Inc. hired Reed to be its controller. During the year, Reed, working closely with
Quo's president and outside accountants, made changes in accounting policies, corrected several errors
dating from 1992 and before, and instituted new accounting policies.
Quo's 1993 financial statements will be presented in comparative form with its 1992 financial statements.
This question represents one of Quo's transactions. List A represents possible clarifications of these
transactions as: a change in accounting principle, a change in accounting estimate, a correction of an
error in previously presented financial statements, or neither an accounting change nor an accounting
error.
Item to Be Answered
As a result of a production breakthrough, Quo determined that manufacturing equipment previously
depreciated over 15 years should be depreciated over 20 years.
List A (Select one)
A. Neither an accounting change nor an accounting error.
B. Change in accounting principal.
C. Change in accounting estimate.
D. Correction of an error in previously presented financial statements.
Answer: C
Explanation:
Choice "b" is correct. Change in lives of fixed assets is a change in accounting estimate.
NEW QUESTION: 3
A. Option A
B. Option D
C. Option B
D. Option C
Answer: A
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