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Question 1 - On December 31, 2022, Seanette, Inc. appropriately changed its inventory valuation method to weighted- average cost from FIFO cost for financial statement and income tax purposes. The change will result in a P11,750,000 decrease in the beginning inventory at Jan. 1, 2022. Assume a 30% income tax rate. The cumulative effect of this accounting change on beginning retained earnings is? Indicate whether Increase or Decrease.
Question 2 - Joey Corp. failed to accrue warranty costs of P170,000 in its December 31, 2022 financial statements. In addition, a change from straight-line to accelerated depreciation made at the beginning of 2023 resulted in a cumulative effect of P130,000 on Joey' retained earnings. Both the P170,000 and the P130,000 are net of related income taxes. What amount should Joey report as prior period adjustment in 2023?
Write a 700- to 1,050-word paper in APA format comparing and contrasting the different types of accounting, namely accrual, cash flow, and fund accounting.
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