Question: Explain why changes in accounting policies and corrections of errors
Explain why changes in accounting policies and corrections of errors have an effect on retained earnings.
Answer to relevant QuestionsJason Wong and Mohammed Ismail are in the process of setting up a painting business. For a number of years, the two friends had summer jobs doing interior house painting and they thought it would be fun to have their own ...In fiscal 2013, Minaki Inc. (Minaki) pur chased machinery for $3,500,000. The machinery was supposed to be depreciated over 10 years on a straight-line basis, but for some reason, it wasn't. Minaki's new controller ...For the year ended December 31, 2017 Savory Inc. (Savory) reported net income of $750,000. On December 31, 2016, Savory had the following capital stock outstanding:Preferred shares, no par, $5 annual dividend, cumulative, ...On December 31, 2017, Nehpton Ltd. reported $3 million of common shares and $6 million of retained earnings. On that date, the company had five million shares authorized and two million outstanding. Management is considering ...Complete the following table by indicating whether the listed transactions or economic events would increase, decrease, or have no effect on the financial ratios listed. Explain your reasoning and state any assumptions that ...
Post your question