Recognition of Accounting Changes or Corrections

question 63

Essay

Recognition of accounting changes or corrections
For each of the following items, indicate the type of accounting change and how each is recognized in the accounting records in the current year.
1. Change from straight-line method of depreciation to double declining balance method
2. Change from the cash basis to the accrual basis of accounting
3. Change from FIFO to weighted average cost method for inventory valuation purposes
4. Change due to failure to record depreciation in a previous period
5. Change in the net realizable value of certain receivables

Understand the role of emotional intelligence in personal and social competence.

Appreciate the evolutionary perspective on emotions and their adaptive purposes.

Recognize the cultural differences in emotional expression and the concept of interpersonal engagement.

Acknowledge the historical and contemporary perspectives on the study of emotions.

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Definitions:

Mortgage-backed Securities

Financial instruments that represent claims on the cash flows from pools of mortgage loans, primarily on residential property.

Wall Street

A street in New York City known as the financial district of the United States, symbolizing the American financial markets.

Financial Theorists

Scholars and experts who study and develop theories concerning how money is managed, including investments, capital markets, and financial institutions.

Opportunity Costs

The denial of gaining from various other opportunities when a single choice is made.