2016年美國CPA練習題精選：Financial 57

下載正保會計網校APP 訂閱最新報考消息

來源: 正保會計網校編輯： 2016/12/05 16:16:30　字體：大小

選課中心

書課題助力備考

選課中心

報考指南

報名考試全輔導

報考指南

備考資料

需要的都在這里

免費題庫

Lore Co. changed from the cash basis of accounting to the accrual basis of accounting during the current year. The cumulative effect of this change should be reported in Lore's current year financial statements as a:

a. Component of income from continuing operations.

b. Prior period adjustment resulting from the correction of an error.

c. Component of income from continuing operations, net of tax.

d. Prior period adjustment resulting from the change in accounting principle.

答案：B

Explanation

Choice "b" is correct. The cash basis for financial reporting is not a generally accepted accounting basis of accounting (GAAP); therefore, it is an error. Correction of an error from a prior period is a reported as prior period adjustment to retained earnings.

Choice "d" is incorrect. Cash basis reporting is not an accounting principle under accrual accounting principles. Thus, the change from cash basis is not reported as a change in accounting principle. In addition, changes in accounting principle are not prior period adjustments; instead, they are treated retrospectively.

Choices "a" and "c" are incorrect. Correction of prior period errors has no effect on the current year's income statement.

【我要糾錯】責任編輯：小明