Question Changes in accounting estimates are Reported by retrospective restatement of financial statements Considered to be accounting errors Considered to be a change in accounting policy Accounted for in the period of the change and future periods Accounted for with a cumulative "catch-up" adjustment < 1 Restrictions on retained earnings can be Statutory limits set by government Limits that identify how much of the retained earnings balance is not available for dividends or the repurchase of shares Due to loan agreements Set by a corporation's directors in order to limit dividends and maintain cash All of these answers 2 T m

Answer 1.Correct answer is Accounted for in the periods of change and future periods A change in accounting estimate is the change required in the expectation of company regarding the future outcomes from the asset and liability and thus change in the estimate of future benefits and obligation from that asset or liability. A change in estimate is required to be recorded in the current period and in the future periods.No retrospective adjustments is required. Other answer is incorrect as- 1.Accounitng errors and accounting estimates are different, accounting errors are the mistakes done in recording a transaction. 2.Accounting policy and accounting estimates are different, as change in accounting policy is the change in method of accounting followed by company and that is different. 3.Change in accounting estimate is required to be recorded prospectively and not retrospectively. 2. Correct asnwer is Set by a corporation's director in order to limit dividends and maintain cash Restriction on retained earnings are the limitations set on the retained earnings to restrict the profits of business that should be reinvested in the busines and not paid out as dividends. &#160; &#160; &#160; ...