1. S1: In the statement of changes in equity, the effect of the correction of aprior period error is presented separately for each component of equity.S2: Preference share dividend appear under the retained earnings sectionof the statement of changes in equityA. True, TrueB. False, FalseC. True, FalseD. False True2.The entity classified a building as held for sale on January 1, 2020. However, the company decided to use it for a product line expansion on December 31, 2020. Which of the following statements are true?The company will record depreciation expense for the year 2020.The company will recognize an impairment loss on January 1, 2020, if applicable.I onlyII onlyBoth I and IINone of the above3.Which statement is incorrect? Revenues are income that arises from the ordinary course of business activities.Revenues may arise from decrease in liability from primary operations.Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received.Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses.None of the above

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Answered: . S1: In the statement of changes in…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 24GI

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1. S1: In the statement of changes in equity, the effect of the correction of a
prior period error is presented separately for each component of equity.
S2: Preference share dividend appear under the retained earnings section
of the statement of changes in equity

A. True, True
B. False, False
C. True, False
D. False True

2.The entity classified a building as held for sale on January 1, 2020. However, the company decided to use it for a product line expansion on December 31, 2020. Which of the following statements are true?

The company will record depreciation expense for the year 2020.
The company will recognize an impairment loss on January 1, 2020, if applicable.

I only
II only
Both I and II
None of the above

3.Which statement is incorrect?

Revenues are income that arises from the ordinary course of business activities.
Revenues may arise from decrease in liability from primary operations.
Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received.
Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses.
None of the above

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