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NEW QUESTION: 1
When selling shares in a closed-end investment company, an agent must inform the client of any
I. commissions
II. underwriting fees
III. miscellaneous offering expenses
A. I and III only
B. I, II and III
C. I and II only
D. I only
Answer: B
Explanation:
When selling shares in a closed-end investment company, an agent must inform the client of
any commissions, underwriting fees, or miscellaneous other offering expenses involved.
NEW QUESTION: 2
An enterprise changes its method of accounting for depreciation during the current year because it believes that the result will be a more appropriate presentation in the financial statements. In its income statement for the year, how should the enterprise report the adjustment resulting from the change in accounting policy if all relevant amounts are practicably determinable?
A. Included in the determination of profit or loss for the current period
B. Reported as an adjustment to beginning retained earnings for the first period presented
C. Not disclosed in the financial statements
D. Disclosed as a separate type of depreciation expense, directly following depreciation expense for the current year
Answer: B
Explanation:
A change in accounting policy should be applied retrospectively unless it is impracticable to determine period-specific effects or the cumulative effect. Retrospective application means adjusting the opening balances of equity e.g. retained earnings) for the first period presented and restating other comparative amounts.
NEW QUESTION: 3
A. Option B
B. Option D
C. Option A
D. Option C
Answer: C
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