F1 - Income Statement Flashcards Preview

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Flashcards in F1 - Income Statement Deck (3)
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1
Q

How should the effect of a change in accounting principle that is inseparable from the effect of a change in accounting estimate be reported?

A

As a component of income from continuing operations.

2
Q

The cumulative effect of a change in accounting principle is shown as

A

An adjustment to beginning retained earnings.

3
Q

Changes in estimates affect only:

A

The current and subsequent periods (not prior periods and not retained earnings)