Which is not one of the approaches for reporting accounting

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Problem 1: Which of the following will NOT lead to a prior period adjustment:

Multiple Choice

Option 1: Correction of an error in the ending inventory from last year.

Option 2: Correction of an error in insurance expense from last year.

Option 3: Correction of an error in depreciation expense from last year.

Option 4: Correction of an error in recording a long-term asset as a current asset from last year.

Problem 2: Which of the following is not one of the approaches for reporting accounting changes?

Multiple Choice

Option 1: The prospective approach.

Option 2: All of these answer choices are approaches for reporting accounting changes.

Option 3: The modified retrospective approach.

Option 4: The retrospective approach.

Reference no: EM132704858

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