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Financial Accounting Exam Tutorial: test counseling prior period error corrections

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					Financial Accounting Exam Tutorial: early error correction test counseling

  financial accounting test counseling pre
  1) an overview of prior period errors
  prior period error, is the lack of use or wrong use of the following two information,
causing the financial statements of the previous omission or misstatement. (B)
correction of accounting errors in the accounting treatment
  discovery of accounting errors, the enterprise should be based on the nature of errors
corrected in time, and with the following approach:
. Current accounting errors occurred, should adjust the current related projects.
. Early occurrence of a significant accounting error, should adjust the current related
projects.
. Early occurrence of a significant accounting error, business law should be corrected
by retrospective restatement of prior period errors important,
  retrospective restatement method, is found when the initial error is regarded as the
prior period error had never occurred, thus Related project financial statements to
correct methods.
  (c) disclosure of prior period error corrections

 [Example 29] The following accounting treatment, there has been an accounting
error ().
 A. will meet the standard of purchased fixed assets worth 15 million special research
equipment as Audit & Accounting
 B. will the amortization period of a patent law benefited from the years benefit to the
contract period
 C. methods to provision for bad debts accounts receivable balance by the percentage
method to the aging analysis method
 D. will Guiji "long-term prepaid expenses" account The preparation costs incurred
during the period divided into 5-year amortization
 E. will be issued Consigned batch of goods is recognized when the sales
 Answer: AD / center>

				
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