WGU D105 - Intermediate Accounting III - Units 5-9 Exam Questions AND Correct Answers

WGU D105 - Intermediate Accounting III - Units 5-9 Exam
Questions AND Correct Answers
A change in accounting estimates is reported in - ✔✔(1) the
period of change if the change affects that period only, or (2)
the period of change and future periods if the change affects
both.


A change in estimate that affects several periods companies
should disclose the effect - ✔✔on income from continuing
operations and replated per share amounts of the current
period.


a decrease in a current asset account - ✔✔increases cash
flows from operating activities.


Accounting principle change disclosure in the notes includes -
✔✔The nature of and reason for the change in accounting
principle and an explanation of why the newly adopted
accounting principle is preferable. The effect of the accounting
change on the carrying amounts of assets and liabilities as of
the beginning of the first year's financial statements
presented. The cumulative effect on retained earnings. The
cumulative effect of the accounting change is reported on the

, beginning (opening) balance of retained earnings for the
earliest period financial statement presented.


acquisition of a business - ✔✔deduction in investing activities


amoritization of discount on bonds payable - ✔✔addition to
operating activities


amoritization of premium on bonds payable - ✔✔deduction to
operating activities


amortization of intangibles and deffered charges -
✔✔addition to operating activities


An increase in a current asset account - ✔✔decreases cash
flows from operating activities.


An increase in a current liability account - ✔✔increases cash
flows from operating activities.