For Each of the Following Scenarios, Determine the Effects (If

question 74

Essay

For each of the following scenarios, determine the effects (if any)of the accounting change (correction of error, change in accounting policy, or change in estimate)on the relevant asset or liability, equity, and comprehensive income in the year of change and the prior year. Use the following table for your response. A. Company A increases the allowance for doubtful accounts (ADA). Using the old estimate, ADA would have been $71,000. The new estimate is $74,000.
B. Company B omitted to record an invoice for a $7,000 sale made on credit at the end of the previous year and incorrectly recorded the sale in the current year. The related inventory sold has been accounted for.
C. Company C changes its revenue recognition policy to a more conservative one. The result is a decrease in prior year revenue of $4,200 and a decrease in current-year revenue of $6,300 relative to the amounts under the old policy.

Understand the transtheoretical model and its stages in the context of behavior change.

Identify techniques and methods for behavior change.

Recognize the impact of age, habits, motivation, and gender on behavior.

Describe the terms and concepts related to behavior modification (including self-efficacy, enabling factors, and motivation).

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Definitions:

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures, indicating the financial health and liquidity of a company.

Operations

The day-to-day activities necessary for a business to function, including production, sales, and administration.

PP&E

Property, Plant, and Equipment - tangible long-lived assets used in the normal course of business to produce goods and services.

Sale Of Land

This transaction involves the disposal of land owned by an entity, which can affect the financial statements through gains or losses.