Question 1

A transaction that is material in amount, unusual in nature, but not infrequent in occurrence should be presented separately as a (an)

		Component of income from continuing operations, but not net of applicable income taxes
		Component of income from continuing operations, net of applicable income taxes
		Extraordinary item, net of applicable income taxes
		Prior period adjustment, but not net of applicable income taxes

Question 2

A change in accounting principle requires that the cumulative effect of the change for prior periods be shown as an adjustment to:

		Beginning retained earnings of the earliest period presented
		Comprehensive income for the earliest period presented
		Stockholders' equity of the period in which the change occurred
		Net income of the period in which the change occurred

Question 3

Which of the following is not an accounting change?

		Change in accounting principle
		Change in accounting estimate
		Change in a reporting entity
		Change because of an error

Question 4

If year one sales equal $800,000, year two equal $840,000 and year three equals $896,000 the percentage to be assigned for year two in a sales trend analysis, assuming that year 1 is the base year, is

		100%
		89%
		105%
		112%

Question 5

A change in the method of inventory pricing from FIFO to LIFO would be accounted for as a (an):

		Part of discontinued operations
		Part of gross profit
		Change in accounting principle
		Change in estimate.