Ask Question
BusinessBusiness
15 October, 12:31

Which of the following would not be accounted for using the retrospective approach?

a) A change from LIFO to FIFO inventory costing.

b) A change from the equity method of accounting for investments.

c) A change in accounting for long-term construction contracts by recognizing revenue over time rather than when the contract is completed.

d) A change in depreciation methods.

+5
Answers (1)
  1. 15 October, 13:22
    0
    C) A change in accounting for long-term construction contracts by recognizing revenue over time rather than when the contract is completed.

    Explanation:

    The IRS allows long term construction projects to use two methods of accounting: completed contract method and percentage of completion method.

    For residential projects or small long term construction projects, the completed contract method is used. The contractor doesn't recognize revenue or expenses until the contract is completed. For nonresidential long term construction projects, the percentage of completion method is used. The contractor recognizes revenue and expenses over time as the construction project advances.

    When you use the retrospective approach, you must determine the cumulative effect of changing the accounting system. This could work if the accounting method is changed from percentage of completion method to completed contract method, but not vice versa.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following would not be accounted for using the retrospective approach? a) A change from LIFO to FIFO inventory costing. b) A ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Y3K, Inc., has sales of $7,475, total assets of $3,525, and a debt-equity ratio of. 34. Assume the return on equity is 20 percent. What is its net income?
Answers (1)
The operations of Smits Corporation are divided into the Child Division and the Jackson Division. Projections for the next year are as follows: Child Division Jackson Division Total Sales revenue $250,000 $180,000 $430,000 Variable expenses 90,000
Answers (1)
Blink, Inc. has 1,000 shares of $10 par, 5% preferred stock, and 20,000 shares of $10 par common stock issued and outstanding. If the board of directors authorizes a $20,000 dividend, the payment to common shareholders will total $
Answers (1)
In reconciling a bank statement, the bank statement balance is $1,000 and the balance per books is $1,205. A bank service charge is $5; a deposit in transit totals $500; and outstanding checks total $300.
Answers (1)
Which music style is least likely to be embellished by the performer? A. Fugue B. Aria C. Solo Sonata D. Prelude
Answers (1)
New Questions in Business
On January 1, 20X8, Package Company acquired 80 percent of Stamp Company's common stock for $280,000 cash.
Answers (1)
Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred.
Answers (1)
Suppose that cookie producers create a positive externality equal to $2 per dozen. What is the relationship between the equilibrium quantity and the socially optimal quantity of cookies to be produced? a. They are equal. b.
Answers (1)
Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year.
Answers (2)
In 2016, teller company sold 3,000 units at $600 each. variable expenses were $420 per unit, and fixed expenses were $240,000. what was tellers 2016 net income?
Answers (1)
Home » Business » Which of the following would not be accounted for using the retrospective approach? a) A change from LIFO to FIFO inventory costing. b) A change from the equity method of accounting for investments.
Sign Up Forgot Password?