Which of the Following Is an Accounting Error

question 33

Multiple Choice

Which of the following is an accounting error?

• A)Inventory was sold below carrying amount even though the inventory had been previously written down to the lower of cost and net realizable value.
• B)Convertible securities that were identified as dilutive for computing diluted EPS were not converted by the expiration date.
• C)A change in economic conditions resulted in the fair value of goodwill declining from $15 million to $10 million.
• D)Development costs of an intangible asset were capitalized when only five of six criteria for capitalization had been satisfied.

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Definitions:

Division

A mathematical operation where one number (the dividend) is divided by another (the divisor), showing how many times the divisor fits into the dividend.

Division

A mathematical operation that represents dividing one number by another.

Polynomial

A mathematical expression consisting of variables and coefficients, that involves only the operations of addition, subtraction, multiplication, and non-negative integer exponents.

Factor

A number that divides another number exactly, without leaving a remainder, or the process of breaking down expressions into simpler components that can be multiplied together.