Indicate the Nature of Each of the Situations Described Below

question 92

Essay

Indicate the nature of each of the situations described below using the following three-letter code.
CODE DESCRIPTION
CPR: Change in principle reported retrospectively
CPP: Change in principle reported prospectively
CES: Change in estimate
CRE: Change in reporting entity
PPA: Prior period adjustment required
____ Technological advance that renders worthless a patent with an unamortized cost of
$45,000.
____ Change from LIFO inventory costing to average inventory costing.
____ Including in the consolidated financial statements a subsidiary acquired several years
earlier that was appropriately not included in previous years.
____ Change from FIFO inventory method to LIFO.
____ Pension plan assets for a defined benefit pension plan achieving a rate of return in excess
of the amount anticipated.
____ Change from the pay-as-you-go method to estimating warranty expense in the period the related product is sold.
____ Change from declining balance depreciation to straight-line.
____ Change from determining lower of cost or market for inventories by the individual item
approach to the aggregate approach.
____ Settling a lawsuit for less than the amount accrued previously as a loss contingency.
____ Change in the estimated useful life of office equipment.

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Definitions:

Fees

Charges or payments made for professional services, access to facilities, or other services provided by businesses or professionals.

Freemium Model

A business model where basic services are provided free of charge while more advanced features must be paid for.

Free Newspapers

are newspapers distributed without charge, often funded by advertising revenue, and aimed at increasing readership and influence.

Advertisements

Paid announcements or messages in the media, intended to inform or influence the people who receive them about products, services, or ideas.