Reference no: EM132952634

Problem 1: A change in accounting policy includes all of the following, except:

Option 1: The initial adoption of a policy to carry assets at revalued amount.

Option 2: The change from cost model to fair value model of measuring property, plant and equipment.

Option 3:  The change in inventory valuation from FIFO method to the weighted average method.

Option 4: The change in depreciation method from sum of year's digits to straight line method.

Problem 2: Which of the following items should be presented under Cash flows from investing activities, according to PAS 7 statement of cash flows?

Option 1: Employee costs

Option 2:  Property revaluation

Option 3:  Redemption of debentures

Option 4: Development costs capitalized in the period

Problem 3: If machinery account is debited with the amount of repairs incurred on the machine, this is an example of *

Option 1:  Error of principle

Option 2: Error of commission

Option 3:  Error of omission

Option 4: Error of partial omission