Changes in accounting estimates:

Multiple Choice

are the same as an accounting error.

are accounted for on a prospective basis.

require an adjustment to retained earnings.

are accounted for on a retrospective basis.Multiple Choice

those that will not be used in the next operating cycle.

those that are expected to be converted to cash or to be used in production within one year or the operating cycle, whichever is longer.

those that management plans to retain beyond the next year.

those that management plans to retain beyond the next operating cycle.

ABC Ltd$.$ reported a gain from discontinued operations of $$40,000,$ net of tax. This item should be separately presented in the:

Multiple Choice

Single$-$step format only of the income statement

Multiple$-$step format only of the income statement.

Single$-$step and multiple$-$step format of the income statement

Other comprehensive income portion of the statement of comprehensive income.