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Blababa [14]
3 years ago
6

What is a financial institution’s decision to honor your checks even when you have exceeded your balance.

Business
1 answer:
Anastaziya [24]3 years ago
6 0
Overdraft Protection is a financial institution's decision to honor your checks even when you have exceeded your balance. A fee is charged to you for every overdraft.


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Lore Co. changed from the cash basis to the accrual basis of accounting during 2005. The cumulative effect of this change should
marysya [2.9K]

Answer: Prior period adjustment resulting from the correction of an error.

Explanation:

The Cash basis method is not acceptable under both IFRS and U.S. GAAP accounting principles and these are the principles followed by the majority of the world so Lore Co. was using the cash basis in violation of both conventions which means that their accounting records before the change are considered wrong and full of errors.

In changing to the acceptable principles, they are correcting that error and need to adjust prior periods for that error as well.

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Answer:

Organizational Behavior Specialist

Explanation:

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3 years ago
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2 years ago
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Please provide a proper information to answer this question
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