Elektroniczna wymiana danych

Exercise 11 
For many years, Yost Company has used the sum-of-the-year-digits method of computing 
depreciation. For the current year, the straight-line method was used, depreciation expense 
amounted to 50.000, and net income amounted to 60.000. Depreciation computed by the sum-
of-the-year-digits method would have been 65.000. (a) What is the quantitative effect of the 
change in method on the net income for the current year? (b) Is the effect of the change 
material? (c) Should the effect of the change in method be d isclosed in the financial 
statement? 
Exercise 12 
You have just been employed by a relatively small merchandise business that records its 
revenue only when cash is received and its expenses only when cash is paid. You are aware of 
the fact that the enterprise should record its revenues and expenses on the accrual basis. 
Would changing to the accrual basis violate the principle of consistency? Discuss. 
Exercise 13 
Indicate for each of the following items the amount of revenue that should be reported for the 
current year and the amount of revenue that should be postponed to a future period. Give a 
reasoning for your answer. 
a)
Merchandise on hand at the end of the current fiscal year, costing 172.500, is expected 
to be sold in the following year for 242.500. 
b)
Thirty days before the end of the current fiscal year, 100.000 was loaned at 12% for 60 
days. 
c)
Season tickets for a series of four concerts were sold for 90.000. Three concerts were 
played during the current fiscal year. 
d)
Salespersons submitted orders in the current year for merchandise to be delivered in 
the following year. The merchandise had a cost of 20.000 and a selling price of 
27.500. 
Exercise 14 
The cost of the merchandise inventory at the end of the fiscal year of operations, according to 
three different methods, is as follows: fifo, 95.500; average, 91.000; lifo, 83.500. If the 
average cost method is employed, the net income reported will be 75.000.
(a)
What will be the amount of net income reported in the lifo method is adopted? 
(b)
What will be the amount of net income reported in the fifo method is adopted? 
(c)
Which of the three methods is the most conservative in terms of net income? 
(d)
Is the particular method adopted of sufficient materiality to require disclosure
2
in the 
financial statement? 
2
Disclosure is the process of ma king fa cts or informa tion known to the public. Proper disclosure by corpora tions 
is the a ct of ma king its customers, investors, a nd a ny people involved in doing business with the compa ny a wa re
of pertinent informa tion. Corpora tions issue disclosures to provide investors a nd investment a na lysts with 

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Accounting
– Lectures a nd tutoria ls exa mples 
Pa ge 5 of 14